Tracking expenses vs Setting a budget

[coupable]

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.

You will not get rid of debts if you spend the full time in one job especially of you are an employee. You should start thinking about to diversify your sources of income. Keep your job as employee without working extra time and think to lunch you own business. You can start a commercial business if you don't practical skills. And I think money from the forum can always help.

[Vaculin]

I get it that some create a budget out from their monthly income without tracking their expenses, while others get it from tracking their expenses monthly. So both are actually valid, but personally, I always make a budget plan out from the tracked expenses I've made from day 1 up to the last day, and adjust the expenses if my monthly come is insufficient.

However, let's not forget that saving for our emergency funds should also be in the list. And tracking of expenses could be very helpful so that you can get rid of those unnecessary expenses and add more to your savings or investment funds.

[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.

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.

What I believe is that money most be spent, whether you are happy to spend it or not it has to be spent but the way it's spent makes it more appealing, so you can track all your expenses yet become the worst financially stable person when with the tracked expenses, so what I have recommended before is set your wants to come after your needs have been settled and the way you arrange the settlement of your bills helps you alot and that is called tracking, people don't find it difficult to track how they spend but they find it difficult to differentiate between needs and wants. and that is the only financial mistakes that everyone claims to have and if you check the rich they already identified it and that's why they are considered wicked people because they refuse to compromise the need to for want.

[dansus021]

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?

Tracking expenses vs Setting a budget both of them are good if you a accountant student you will understand because the lecturer said so hahahhahah. But in my opinion setting a budget it way more easier than tracking expenses. Lets say you have 100$ just for fun you will only spend that money without tracking one by one.

But if you can combine both tracking and setting a budget you will notice how much you spend on specific detail. you have budget 100 usd per mont for food with tracking expense you will start notice what restaurant and what food you buy like a lot and sometimes in other budget you start to notice a hidden fee that most people didnt care.

[coupable]

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?

Tracking expenses vs Setting a budget both of them are good if you a accountant student you will understand because the lecturer said so hahahhahah. But in my opinion setting a budget it way more easier than tracking expenses. Lets say you have 100$ just for fun you will only spend that money without tracking one by one.

But if you can combine both tracking and setting a budget you will notice how much you spend on specific detail. you have budget 100 usd per mont for food with tracking expense you will start notice what restaurant and what food you buy like a lot and sometimes in other budget you start to notice a hidden fee that most people didnt care.

But what to do with emergency cases like unespected incidents like health issues or fixing the broken things (car,house...)? Setting a budget shoulod contain a dedicated amount for saving + tracking the expenses. Otherwise, tracking the expenses will never save you from debts in best cases.

[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.

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.

It is very important that we should actually pay attention to money management properly, but since spending is a very necessary and natural part of our life, we have to spend. But we have to be careful and it must be in a well-planned way. We want everything in our life to be well-controlled, so we have to set a budget and track the expenses and stabilize that budget.

[Unknown Op]

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?

Tracking expenses vs Setting a budget both of them are good if you a accountant student you will understand because the lecturer said so hahahhahah. But in my opinion setting a budget it way more easier than tracking expenses. Lets say you have 100$ just for fun you will only spend that money without tracking one by one.

But if you can combine both tracking and setting a budget you will notice how much you spend on specific detail. you have budget 100 usd per mont for food with tracking expense you will start notice what restaurant and what food you buy like a lot and sometimes in other budget you start to notice a hidden fee that most people didnt care.

Many people are making budget for different things and they are doing because they know about that and they know the important of budgeting and of they will not make focus on that there will be more chances of financial loss because you don't know where your money is going. You have to set priorities if you want to be financial stable person which matters a lot in life because people will judge you by your money and if you will not save then there will be time you will stand in the side of road and you will beg money for survival. Many people are spending their money on useless things which are not improving their mindset and status but they want to show many people they are rich but actually they are poor because they have more burden and they have to installments of the things.

[tottong]

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?

We often talk about financial management and its aim is to limit unnecessary expenses so that money can be used more productively.
Managing finances may be easy, but sometimes the actual implementation seems more difficult because people sometimes don't stick to their plans.
There's no need to track all expenses, but we do need to limit them so that we can be more precise in our spending. Many people unknowingly overspend due to a lack of planning.

Tracking all expenses is important because it allows us to understand our spending and thus we can limit our spending if it exceeds reasonable limits. Success in managing finances can be seen from how someone spends the money they have and to achieve maximum results, a good spending plan is needed.

[Fredomago]

It is very important that we should actually pay attention to money management properly, but since spending is a very necessary and natural part of our life, we have to spend. But we have to be careful and it must be in a well-planned way. We want everything in our life to be well-controlled, so we have to set a budget and track the expenses and stabilize that budget.

Right, you need that balance and needs to adjust each time you plan how you going to spend your money, just like what you said spending is part of your life, even you want to minimize but there are things that you need to take care, but as longas you are using your money wisely from buying what you need and not what you want then budgetting may cater those track expenses that you need to settle.

[RockBell]

I get it that some create a budget out from their monthly income without tracking their expenses, while others get it from tracking their expenses monthly. So both are actually valid, but personally, I always make a budget plan out from the tracked expenses I've made from day 1 up to the last day, and adjust the expenses if my monthly come is insufficient.

Budget is a factor and that is why even the government don't joke when it comes to budgeting it gives a direction because it make tracking for them actually, and only people that are responsible are the only ones we feel that are always taking things seriously, but people that are use to reading finance books should know about all this things and not everyone can actually relate, and if you are working or have a means of making money then you have to take budget serious because that is the only way you can spend your money well.

However, let's not forget that saving for our emergency funds should also be in the list. And tracking of expenses could be very helpful so that you can get rid of those unnecessary expenses and add more to your savings or investment funds.

And having emergency funds is one thing that have saved those that even have the intention of  investing or even if you not investing having a budget and also having a scale of preference knowing what you need and what you don't need is very important and there is no way goals can be archived when you don't have a budget it is very important.

[Nothingtodo]

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?

Basically, you need to set a monthly budget to keep your income and expenses in balance and spend based on that budget. No matter how much you track your expenses, if you can't keep them within your budget, there's no point in tracking them.
In a month, record your necessary expenses, record your unnecessary expenses, and record your luxury expenses, which are not really necessary. Create a statement of your income and expenses for the month, create a budget for those expenses, and manage your month according to that budget. You will see that it will be possible to save some money from your monthly salary at the end of the month.

[MissNonFall9]

It is very important that we should actually pay attention to money management properly, but since spending is a very necessary and natural part of our life, we have to spend. But we have to be careful and it must be in a well-planned way. We want everything in our life to be well-controlled, so we have to set a budget and track the expenses and stabilize that budget.

Right, you need that balance and needs to adjust each time you plan how you going to spend your money, just like what you said spending is part of your life, even you want to minimize but there are things that you need to take care, but as longas you are using your money wisely from buying what you need and not what you want then budgetting may cater those track expenses that you need to settle.

You are undoubtedly right that we have to spend money in our life like basic expenses (food, medical, house rent, education expenses etc.) and after that we save some extra money to ensure our future life as well as for entertainment. These have to be spent in a planned manner for our life and not just depending on our desires. Spending just depending on our desires may give us temporary peace of mind but it puts our future life in danger. Spending money is necessary so we must do it in a controlled manner.

[dezoel]

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.

This is the true approach and unfortunately not all of us can. This is why we do budget and try to cut costs. Right now, I work a lot too and there isn't more jobs that I can do, I mean even if I can find a job, I do not have time to do anything else, my job is the only job I can do realistically, are there some days where I am done earlier?

Sure, but who would pay me for dynamic "maybe will work 5-6 times a month" type of job? Nobody would, so it's clear I can't work another job. So how could I increase my income? I can't. Hence why I try to cut my costs.

[OsaiEmma]

In my honest opinion, I think setting up a budget is the way to go, I mean, why should you be tracking your expenses, and I don't see the significance of that in curtailing your spending habit, but rather, setting up a budget will create a form of discipline on how and what you should be spending your money on, it will tell you to spend responsibly and not above your set budget, and if you go over your budget, it will guide you on how to correct it.

In addition to setting up a budget, also set up categories of expenditure based on importance and necessity, this will help you not to start spending money recklessly, e.g, if let's say your rent takes uppermost importance, then you won't recklessly go to change your wardrobe before paying up your rent. So I'll say budgeting is way more important than tracking your expenses.

[HelliumZ]

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?

If someone has a good source of income and if he gets a good digit salary every month then there is no need for him to track expenses because if he has a good income at the end of the month he will be able to live a luxurious life. But for someone who has a fixed income and no other source of income every month then of course both tracking expenses and budgeting are very important.
He must make a balanced budget by balancing his income and expenses and spend based on this budget. He must be in such a way that even after spending every month, he has some extra money left in the balance so that he can meet important needs such as medical expenses.

[Cgrexp]

I get it that some create a budget out from their monthly income without tracking their expenses, while others get it from tracking their expenses monthly. So both are actually valid, but personally, I always make a budget plan out from the tracked expenses I've made from day 1 up to the last day, and adjust the expenses if my monthly come is insufficient.

However, let's not forget that saving for our emergency funds should also be in the list. And tracking of expenses could be very helpful so that you can get rid of those unnecessary expenses and add more to your savings or investment funds.

Most people get paid on a monthly basis. So if we calculate all the expenses from the first day of the month till the next payday and make a budget accordingly, it is a conscious and effective method that allows us to make decisions on real expenses. When we track expenses in each area, it is easy to understand where we are spending more money and where we should reduce our expenses. And after calculating the expenses, it is better to determine the amount of money to invest or save, but along with this, money should be kept for an emergency fund because it provides financial security to a person in unexpected situations. Budget planning is essential to maintain financial stability and control.

[ChocolateBitcoinK]

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?

If someone has a good source of income and if he gets a good digit salary every month then there is no need for him to track expenses because if he has a good income at the end of the month he will be able to live a luxurious life. But for someone who has a fixed income and no other source of income every month then of course both tracking expenses and budgeting are very important.
He must make a balanced budget by balancing his income and expenses and spend based on this budget. He must be in such a way that even after spending every month, he has some extra money left in the balance so that he can meet important needs such as medical expenses.

Those who have a higher income and multiple sources of income may have less financial stress. However, just because a person has a higher income does not mean that he does not need financial planning or management. No matter how much income he has, if there is no proper management, no one can be able to create sustainable wealth because creating sustainable wealth requires financial management that helps to deal with unexpected situations and at the same time determines the necessary budget in all sectors necessary for living and shows the extent of a person's ability to build wealth. However, for those who have limited income and do not have multiple sources of income, setting a budget is more important because they do not have extra money from which they can deal with their situation and they have to create everything from their needs, investments, savings.

[Cheema02]

In my honest opinion, I think setting up a budget is the way to go, I mean, why should you be tracking your expenses, and I don't see the significance of that in curtailing your spending habit, but rather, setting up a budget will create a form of discipline on how and what you should be spending your money on, it will tell you to spend responsibly and not above your set budget, and if you go over your budget, it will guide you on how to correct it.

In addition to setting up a budget, also set up categories of expenditure based on importance and necessity, this will help you not to start spending money recklessly, e.g, if let's say your rent takes uppermost importance, then you won't recklessly go to change your wardrobe before paying up your rent. So I'll say budgeting is way more important than tracking your expenses.

Your point is very realistic according to discipline in budget and its true that if we make decisions advance how to use our budget then its help to remains consistent. So its best way to devid budget in the form of categories like a amount for rent for food and savings and some others and through this method we just focused on important expenses first and its also reduce the financial stress because you already have knowledge about your limitations. And also by tracking expensive we have a track where we actually spend money and its help to prepare next budget early on. So the catching point is that budgeting guide how to spend and tracking expensive we aware about out habits. So when these two factors used combinly then people are able to make wise decisions and avoid for unnecessary spending.

[tygeade]

Basically, you need to set a monthly budget to keep your income and expenses in balance and spend based on that budget. No matter how much you track your expenses, if you can't keep them within your budget, there's no point in tracking them.
In a month, record your necessary expenses, record your unnecessary expenses, and record your luxury expenses, which are not really necessary. Create a statement of your income and expenses for the month, create a budget for those expenses, and manage your month according to that budget. You will see that it will be possible to save some money from your monthly salary at the end of the month.

I would say luxury and unnecessary expenses are basically the same? I get that wasting money on taco bell every single day for a month will be waste and not needed, and yet also won't be luxury, but if your mind realizes that it's the same, a waste of money for either, you can start to do better.

I just spend money a lot on special important days, like on valentines day of course I spent some money for my wife, because after all why are we working this much if not to keep our loved ones happy? But aside from that, I have been doing fine. I think this is the first month where I di not spend too much, and only cost I have is my previous debts, so I think I will start to do better soon, just need to keep life not expensive first.