I have been doing this religiously every day and it helps a lot when I know where my money goes. Armed with this knowledge, I can then act to reduce or increase the amount spent/earned based on the categories that I have defined. You can do this tracking for free by using google documents, openoffice or downloading a free app into your hand-phone. I prefer doing this via google documents, so that I can access it as long as I have an internet connection.
Some of the columns that I have been using are as follows: (You can customize this to your own liking)
- Type (Example: Meals, Transport, Income)
- Category (Example: Lunch, MRT Top Up, Salary)
- Description (Example: Chicken Rice)
How do you do your expense tracking?