Tracking expenses vs Setting a budget

[fuguebtc]

Setting a budget is better than tracking expenses,
You are just keeping records of the damages done, I think it will be better to plan to arrange your expenses to avoid danger
As they say prevention is better than cure, this is a typical example of that.

Tracking expenses is not simply about recording of the damages done . As some others have said, it helps you know where your money is going, what you are spending it on, and whether those expenses are necessary. In this way, you will be able to adjust your spending habits to avoid wasting money.

Budgeting alone is sometimes not enough, and that is why some people budget at the beginning of the month but still spend more than they intended.


Why not combine both instead of choosing just one?

[MissNonFall9]

Tracking your expenses is a good habit to have. Or I thought so. But I recently came across an advice where tracking expenses actually does nothing for you but rather what we should do is just set a budget for every month. No need to track every dollar spent as long as it is within the budget. What do you think? Personally I believe tracking expenses makes us mindful of what we spend the most on and what we should lessen next time. Is it necessary or no?

The advice you received is good but it should never be done without tracking your expenses. Setting a budget is very important for us but for that we need to know our expenses well. We all know that to solve a problem, the first thing you need to do is to observe the problem carefully. If you don't understand the problem, you can never solve it. So when it comes to setting a budget, we need to understand the expenses and spending related issues and formulate the budget accordingly. Therefore expense tracking is very important.

[passwordnow]

Why not combine both instead of choosing just one?

I agree. Why choose only one and have to be in that situation when you can freely have both of them to be have a good financial standing. For all of the choices that we've got, if it's possible to choose all of them, then choose all of those that suits your financial style.

Setting a budget is better than tracking expenses,

Both are good and there's no comparison needed for it because each of them have a different purpose in our finances.

[Fredomago]

Tracking your expenses is a good habit to have. Or I thought so. But I recently came across an advice where tracking expenses actually does nothing for you but rather what we should do is just set a budget for every month. No need to track every dollar spent as long as it is within the budget. What do you think? Personally I believe tracking expenses makes us mindful of what we spend the most on and what we should lessen next time. Is it necessary or no?

The advice you received is good but it should never be done without tracking your expenses. Setting a budget is very important for us but for that we need to know our expenses well. We all know that to solve a problem, the first thing you need to do is to observe the problem carefully. If you don't understand the problem, you can never solve it. So when it comes to setting a budget, we need to understand the expenses and spending related issues and formulate the budget accordingly. Therefore expense tracking is very important.

It's crucial as you need to set things accordingly, as you mentioned you need to observe your expenses and you need to balance everything in order for you to set your budget, the good implication is once you understand your situation you'll start to adjust and both will help each other as tracking your expenses gives you that knowledge on how you balance your budget more on adjusting to your salary and other sources of income that you have to make sure that it cater the budget that you need.

[Ziskinberg]

Setting a budget is better than tracking expenses,
You are just keeping records of the damages done, I think it will be better to plan to arrange your expenses to avoid danger
As they say prevention is better than cure, this is a typical example of that.

Tracking expenses is not simply about recording of the damages done . As some others have said, it helps you know where your money is going, what you are spending it on, and whether those expenses are necessary. In this way, you will be able to adjust your spending habits to avoid wasting money.

Budgeting alone is sometimes not enough, and that is why some people budget at the beginning of the month but still spend more than they intended.


Why not combine both instead of choosing just one?

You are right there. Budgeting does not mean that you are doing it smartly since a lot of people do budgeting but finances are still insufficient and unmanageable, but budgeting through tracking expenses is way more effective because it serves as a guide on how to make a proper budget based on your necessary expenses, based on your income.

Having both is the best option, though it requires additional effort but the outcome is always worth our time.

[Sarah_Jannat42]

Tracking expenses or spending them is a thing of the past. And dwelling on the past is not a good habit. It is better to forget the past. But if you can learn something good from a past event, it will bring good results for you. So if tracking expenses is good for you, like if it is helpful in making your budget, then you can track expenses, but if tracking expenses only makes you sad, then it is not for you.

[beerlover]

Tracking expenses is not simply about recording of the damages done . As some others have said, it helps you know where your money is going, what you are spending it on, and whether those expenses are necessary. In this way, you will be able to adjust your spending habits to avoid wasting money.

Budgeting alone is sometimes not enough, and that is why some people budget at the beginning of the month but still spend more than they intended.

Why not combine both instead of choosing just one?

Yeah, if you could track where your money is going then you will be able to do budget a lot easier. Knowing exactly where your money is going will allow you to see if you have made any useless expenses and what was spent for how much and this way you will see if there are any places to make some cuts.

For me, personally I keep saying the same thing but food is definitely number one thing that I can cut for example, if I just eat cheaper food, like pasta or rice or anything like that, or even chicken, then I could save so much more and pay my debt earlier. But it's hard because I don't go out, I do not eat anywhere fancy, I do not go to movies, I am at home almost every single day, I do nothing for fun, so I think I deserve a bit of good food .

[NurseHub]

tracking expenses is good as setting a budget but the fact remains that even if Yiu track your expenses without a budget it's a waste now you have everything to be spent on but just that they have to come according and in needs not wants, so it's going to be a dependent variable and an independent variable which equally means you will have to do ione to be able to do the next. Budget and spend then track the spending if it aligns with the budget.

[khiholangkang]

Setting a budget is better than tracking expenses,
You are just keeping records of the damages done, I think it will be better to plan to arrange your expenses to avoid danger
As they say prevention is better than cure, this is a typical example of that.

But did you know that there are always unexpected expenses that are not in your budget, this can be very dangerous if you don't record your expenses, making a budget is important and necessary, but financial recording is also no less important because that way you can see your expenses clearly at the end of every month or even annually, you will know where your money will go in the long term, so that can be data for you to evaluate your spending.

There are inflows and outflows. You have to understand that to understand financial management and bookkeeping.

[MissNonFall9]

Tracking your expenses is a good habit to have. Or I thought so. But I recently came across an advice where tracking expenses actually does nothing for you but rather what we should do is just set a budget for every month. No need to track every dollar spent as long as it is within the budget. What do you think? Personally I believe tracking expenses makes us mindful of what we spend the most on and what we should lessen next time. Is it necessary or no?

The advice you received is good but it should never be done without tracking your expenses. Setting a budget is very important for us but for that we need to know our expenses well. We all know that to solve a problem, the first thing you need to do is to observe the problem carefully. If you don't understand the problem, you can never solve it. So when it comes to setting a budget, we need to understand the expenses and spending related issues and formulate the budget accordingly. Therefore expense tracking is very important.

It's crucial as you need to set things accordingly, as you mentioned you need to observe your expenses and you need to balance everything in order for you to set your budget, the good implication is once you understand your situation you'll start to adjust and both will help each other as tracking your expenses gives you that knowledge on how you balance your budget more on adjusting to your salary and other sources of income that you have to make sure that it cater the budget that you need.

Yes. what you are saying is a very effective statement and it is called spending according to income. Many may say that this is a very small thought. But I say that a desert is created by small grains of sand. So these small good habits of ours will take us to a big place one day. So I also agree with your words and say that we must have the knowledge to maintain financial balance, I believe that by doing so, our path to success will be much smoother.

[Fredomago]

Tracking your expenses is a good habit to have. Or I thought so. But I recently came across an advice where tracking expenses actually does nothing for you but rather what we should do is just set a budget for every month. No need to track every dollar spent as long as it is within the budget. What do you think? Personally I believe tracking expenses makes us mindful of what we spend the most on and what we should lessen next time. Is it necessary or no?

The advice you received is good but it should never be done without tracking your expenses. Setting a budget is very important for us but for that we need to know our expenses well. We all know that to solve a problem, the first thing you need to do is to observe the problem carefully. If you don't understand the problem, you can never solve it. So when it comes to setting a budget, we need to understand the expenses and spending related issues and formulate the budget accordingly. Therefore expense tracking is very important.

It's crucial as you need to set things accordingly, as you mentioned you need to observe your expenses and you need to balance everything in order for you to set your budget, the good implication is once you understand your situation you'll start to adjust and both will help each other as tracking your expenses gives you that knowledge on how you balance your budget more on adjusting to your salary and other sources of income that you have to make sure that it cater the budget that you need.

Yes. what you are saying is a very effective statement and it is called spending according to income. Many may say that this is a very small thought. But I say that a desert is created by small grains of sand. So these small good habits of ours will take us to a big place one day. So I also agree with your words and say that we must have the knowledge to maintain financial balance, I believe that by doing so, our path to success will be much smoother.

Indeed, if you practice things out and execute it the way it use to then success may take place, knowing your needs and addressing it thru balance money management will keep you in line with your desire to save up, I understand that it isn't easy especially those minimum wagers but as long as you track your expenses and able to set the right budget there's a big chance that you'll see extra even how small it is that can still be add for your savings.

[justdimin]

Setting a budget is better than tracking expenses,
You are just keeping records of the damages done, I think it will be better to plan to arrange your expenses to avoid danger
As they say prevention is better than cure, this is a typical example of that.

But did you know that there are always unexpected expenses that are not in your budget, this can be very dangerous if you don't record your expenses, making a budget is important and necessary, but financial recording is also no less important because that way you can see your expenses clearly at the end of every month or even annually, you will know where your money will go in the long term, so that can be data for you to evaluate your spending.

There are inflows and outflows. You have to understand that to understand financial management and bookkeeping.

This is literally the reason why poor people stay poor and rich people can stay rich. The rich people can cover all their expenses, even if it's big, it's not big for their size and they are going to be fine. But, if you are middle class or poor, then anything can break your budget and keep you poor. Your fridge broke? Welcome to debt again, car break down? tooth needs cavity filling? insurance time of the year? need new jeans?

Literally anything can break your budget and you can't calculate for it. This is the reason why it's not always smart to try to spend less. People focus on trying to budget and spend less, that is not how you fix your life, it's always better to try to find a life where you start to earn a lot more.

[Dunamisx]

What are we tracking when the budget has already been made, the next code go further with is to be able to see that every bit of the money being budgeted for we explained on the intended items for it purpose, also we shouldn't expect much from the government as an intervention on situations like this because things could get more wrong by the time everyone knows about some of these secrets behind the support leaders.

[KingsDen]

Tracking your expenses is a good habit to have. Or I thought so. But I recently came across an advice where tracking expenses actually does nothing for you but rather what we should do is just set a budget for every month. No need to track every dollar spent as long as it is within the budget. What do you think? Personally I believe tracking expenses makes us mindful of what we spend the most on and what we should lessen next time. Is it necessary or no?

Setting a budget and tracking your expenses works hand in hand.
If you do not track your expenses, how will you be able to set the right budget?
But if you ask me the most important amongst the two;
I'll say that it is tracking your expenses.

Setting a budget will make you economize and maybe starve,
But tracking your expenses will make you adjust naturally to a modest budget.

[barbara44]

It's the poor logic of poor people. They think they have to limit they needs at the level of their incomes. They never think to go out of this circle fearing the debt because the only thing they think about is go into loan debt.
In the other hand, another category of people think that they have to create incomes that can satisfy all their needs. Those are investors and entrepreneurs, who think big.

I would say it is not about the debt, but it's about the income. Poor people just try to lower their spending, and not focus on increasing their income. I work 12+ hours a day to keep increasing my income, and sometimes I do rest and relax, but that's rare and mostly I try to just earn more and more.

I am in debt now too, but that was medical and I cannot avoid that, but now I will just find passive income stuff that will grow overtime and keep investing into that and hope that I can increase my income and won't have to lower my spending anymore. While it's true that not using your money for stupid stuff would be a smart move, you can only lower your spending to a point, so instead focus on increasing your income and you will not have a limit there.

[ZAINmalik75]

Tracking your expenses is a good habit to have. Or I thought so. But I recently came across an advice where tracking expenses actually does nothing for you but rather what we should do is just set a budget for every month. No need to track every dollar spent as long as it is within the budget. What do you think? Personally I believe tracking expenses makes us mindful of what we spend the most on and what we should lessen next time. Is it necessary or no?

I think both approaches have their own pros and cons but I would prfer the "tracking expenses" approach, because it gives us clear idea on where our money is going, because if we follow the other approach, we won't know where our fund is going, we just have set our budget and whatever we want we buy, therefore we are just setting limits of how much funds we can spend, but not where and is it viable or not.

Therefore, tracking is necassary, because when we are tracking, we know which areas are consuming most of our money and where we can cut down some.
Tracking can indeed be a pain and tiring sometimes, but it can help us build discipline and awareness. After practising it for few months, I am sure we will get used to it, and also can save more money.

[Baki202]

tracking expenses is good as setting a budget but the fact remains that even if Yiu track your expenses without a budget it's a waste now you have everything to be spent on but just that they have to come according and in needs not wants, so it's going to be a dependent variable and an independent variable which equally means you will have to do ione to be able to do the next. Budget and spend then track the spending if it aligns with the budget.

This is a good financial principle that have helped a lot of people even to be able to know exactly were there money is going into because for some time now a lot of people are always finding it very hard to be accountable for there money but now with the help of having a budget and tracking your expenses you should be able to tell how your money was spent this is one of the mistakes they are making and when you have budget it shows how financially disciplined that person is because is not everyone that can keep up with having a budget but with time a lot of people will not have a choice than to starting having budget for there funds.

People need to grow financially and you should have a budget every month when your money comes in as a income earner and in this case you will have to have emergency funds because every one that has a budget will definitely have a emergency funds so that when anything comes up they will know were to go. And people are always underestimating what tracking your expenses can do for you because you won't be able to spend recklessly and other advantages that comes with it.

[terrific]

we shouldn't expect much from the government as an intervention on situations like this because things could get more wrong by the time everyone knows about some of these secrets behind the support leaders.

It's a political thing but people deserve better help from the government if it's with the finances.
Starting from the educational support and then the financial education that they'll be teaching, it's the kind of support that every citizen needs.
But great on those people who have become knowledgeable with both setting their budget and tracking expenses without the intervention of government.
I guess hardship and poverty have pushed them to their limits and that's why they have become better in it.

[Fortify]

Tracking your expenses is a good habit to have. Or I thought so. But I recently came across an advice where tracking expenses actually does nothing for you but rather what we should do is just set a budget for every month. No need to track every dollar spent as long as it is within the budget. What do you think? Personally I believe tracking expenses makes us mindful of what we spend the most on and what we should lessen next time. Is it necessary or no?

Maybe you have misinterpreted the advice then, because generally people do both of these things. It really depends on your end goals and how strict you need to be with your finances. If you have a very limited and fixed budget with no flex, then you have to rigidly follow it or know the eventual income vs outgoing early on - otherwise you'll just run out of money. If you have some flexibility in your budget or a fair bit of your income is surplus when all bills are paid, then you have freedom to decide on what you'll spend the remainder on. Maybe you like to travel a lot so it'll be spent on holidays, maybe it all goes into investments/savings with a small amount of fun money left over, it could go into a hobby like classic cars or any number of other places, but you must know the numbers to figure out what you've got.

[Miles2006]

Tracking your expenses is a good habit to have. Or I thought so. But I recently came across an advice where tracking expenses actually does nothing for you but rather what we should do is just set a budget for every month. No need to track every dollar spent as long as it is within the budget. What do you think? Personally I believe tracking expenses makes us mindful of what we spend the most on and what we should lessen next time. Is it necessary or no?

A set budget leads to tracking expenses, meaning they’re both in same line to achieve a good financial goal else setting a budget alone without knowing what to spend per day can as well ruin the plan. I know a proper budget plan will help but, without controlling the amount allocated it’s totally a waste reason why it’s important to calculate first before setting a budget plan in order not to spend wrongly.