How to Save Money by Tracking and Visualizing?
Keeping Track of your money could be the gateway to getting Rich.
It doesn’t matter how much you earn. If your expenses are more than your income, you’re still in debt unless you change our spending habits.
Easier said than done.
But no, you can really optimize your spending habits to save money in just 2 steps.
Tracking
Most of the things I don’t believe until I see it, don’t you?
Similarly, you won’t see and believe your expenses if you don’t have the habit of recording it.
So, start the habit of keeping record of each and every expense you make throughout the day.
But you might think you don’t have enough to pay for such softwares to keep such records.
And let me tell you, you don’t need any fancy apps or tools (better if you can pay). Using Free and Easy tools like Microsoft Excel or Google Sheets does the work perfectly.
And even I myself use them to track records of all the finances and many individuals/organizations do as well.
It’s cross platform as well, can be used on Laptops, tablets, phones and on all Operating Systems (Use Google Sheets in Web).
Why Tracking or Keeping Record?
As said earlier, you don’t believe it if you don’t see it.
Once the expenses are recorded every day, you can review it at the end of the month and find out the things on which you’re spending on.
And based on this data, you can optimize your spending habits. You might have made unwanted purchases or spent carelessly.
When you see all of this data, you’ll start thinking once before spending. Which can be fruitful and you may develop good spending habits, and ultimately save more every day.
Need a Google Sheet Template for Managing Personal Finance?
Visualizing
So, you’ve been keeping track of all your expenses, now you can present those data into beautiful charts or graphs.
And this visual representation is super easy to read and find the things like expenses on different things, expenses by months of the year, etc. which can ultimately help to optimize your spending habits.
For Example, here’s the chart showing the monthly expenses by type.
Now, you might think it must be super hard to make such charts and need some technical knowledge.
But no, I generated these charts using the same tool used to keep record i.e. Google Sheets/Excel Sheets.
And it’s easy as well. You can generate such charts (reports) with few clicks.
Ready to learn Data Visualization with Microsoft Excel?
Follow this Free Tutorial ( Click to Get Access )
So, that’s it guys.
Your Habit is Your Everything.
Please let me know if there’s anything you would like to add.
