My Simple Yet Extremely Effective Budgeting/Tracking Method.

I want to share this to help those struggling to keep a budget and help you keep more of what you make.

For starters, you must change your mindset about money, scarcity, abundance, and lifestyle.

One of the first things I needed to understand to make this work is I don’t need more money or more things to be happy or content.

I need simplicity, organization, discipline, and adjust my lifestyle according to my means.

Essentially, be a good steward of my resources and look at the glass half-full instead of half-empty.

This doesn’t mean I won’t work on my goals or increase my income. I will do both, but I will not be spending like I earn six figures. Not yet, anyway.

You need to be realistic about where you are financially and spend money according to your actual financial position.

The first crucial step is to know what you’re currently doing.

This is also the most difficult because you’re not used to it.

It’s the beginning of implementing a new habit.

It’s also difficult because you’re holding yourself accountable and are taking a hard look at your spending and why maybe, you’re not doing so well.

You need to start tracking your spending to make this budgeting method work. ALL OF IT.

You can get fancy with it and get a nice accounting book, but if that doesn’t motivate you, you can use any notebook.

All you need is somewhere you can write and keep it handy. I leave my budgeting journal on my desk, next to my computer.

I also got a nice journal with a pretty cover. Since I like how it looks, I’m drawn to it. Odd, I know, but it works.

Next, you’re gonna have to put pen to paper. And more importantly, start NOW.

Even if you’re in the middle of the month, go through your credit card or bank statement and write down every single expense.

I like to write the month at the top of the page, and I divide my month into weeks.

I start with the first week, and as the days pass, I will write down anything I have spent at the end of each day. Here’s an example of this week:

This is nothing fancy.

As you can see, at the top, I have written down the dates of this week — February 5th to the 11th (I track my weeks from Sunday to Saturday), and have written down all of my expenses thus far.

In addition, because I work as a bartender, I get tips in cash. I also track whatever cash I make, so I have a clear picture of my income at the end of the month.

I find this method is easier to stick to and less daunting because you’re not taking an entire month or week's worth of information on one day or night.

I tried keeping track of my expenses by waiting until the end of the month, but this doesn’t work because I don’t have a way to look back at the past few days or weeks.

If you keep track of your spending as you go, it’s easy to look and see if you’ve spent a lot of money so far, even if it’s just the beginning of the month.

I hope this makes sense.

After the week has passed, I sit down and look at my overall expenses, and I add up everything I’ve spent.

Keep repeating this for the remainder of the weeks in the month.

At the end of the month, you should have four weeks or so of tracked expenses.

The next part will let you know whether you’re spending more than you’re making, breaking even, or keeping some of the money you make.

Add up all the expenses for the month, and next, go to your bank account and add up all the money you made.

Compare that number, your income, to your expenses, and the answer is pretty clear.

For this method to work, however, you can’t give it up!

You have to make tracking your expenses part of your lifestyle.

The current budgeting journal I have goes back to December 2021. I have kept track of my spending for over a year and will keep doing so until I die.

This sounds dramatic, but it’s true.

Good budgeters always follow their budget and keep track of their expenses.

To give you some motivation, last month, I was able to keep over $2,000 of income in my pocket.

I kept track of my spending and was disciplined enough to say no to buying things I don’t currently need.

I live in probably the most expensive city in the world, New York; I also pay rent, insurance, a cellphone bill, groceries, gas, etc.

I’m telling you this, so the budget police doesn’t come for me and tell me it’s impossible. It is possible; you just have to be very, very disciplined.

I would also like to add I do have the advantage of being one person. I don’t have children, pets, or any dependents.

It’s just me, myself, and I when it comes to money.

Regardless, this method can help anyone.

It’s a great way to get to know your finances intimately and take complete control of your money.

If anyone has any questions or if anything seems unclear, please leave a comment. I will be sure to respond.

Tell me, do you have any tips for saving money and budgeting?

Disclaimer — The information above is for informational purposes only. This is not to be taken as financial advice since I’m not a financial advisor, nor do I have a license to advise people on what to do with their money. If you need further assistance, please get in touch with a financial professional.