Recording your expenses at the end of the month is a good option for those who don’t have a strict budget but would like to improve their results month by month.
It is also possible to carry out accounting on the second or third day of the next month, when all banking operations have already been completed for sure.
The counting process consists of 4 steps.
1. Card spending
Most of the expenses can usually be seen on the cards, for this you need to go to the applications of your banks and look at the general card statements. Typically, banks group spending by category, these categories need to be entered in the Rule along with the total amount.
2. Operations in online banks
Banks do not consider transfers through the application as expenses, so you need to look at the transfers in the “Operations” and “Transfers” sections and find the expenses. For example, it can be utility bills, monthly fees, tips, transfers, loan repayment. In Rule, you need to create the appropriate categories and make these expenses.
3. Electronic wallets and marketplaces
Replenishing electronic money or a marketplace account is not a waste, but the purchases themselves must be taken into account. Typically, such sites do not have general statements by category, so you need to look at your purchases for the month yourself and enter them into the Rule.
The most annoying category to manage. It is better to record these expenses immediately in the Rule, this is the only way you can definitely fix your cash expenses.
What we got
Now we know our spending for the month. Here’s what it gives us:
– We will be able to adjust our next month, spend less in certain categories.
– You can plan the next month in advance, setting aside the necessary amounts, and invest the rest at interest.
– Knowing your expenses from month to month, you can predict expenses for six months in advance and create a reliable financial cushion.
– You can choose the most profitable cashback programs under the categories with the highest expenses.