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Four Ways to Track Spending

The first step to sound personal financial management is strict spending management. There are multiple ways to track spending, from

pen and paper to an app connected to the bank account. In this post, we will provide a brief overview of tracking methods, with pros and cons, of expense management practices:

Manual registration (notebook)

Pros: Availability and simplicity (of course, provided the page or notebook is always with you, or you are not too busy with the mobile on other tasks).

Disadvantages: inability to summarize and know in real-time what the state of expenditure is in each section of the budget; Lots of manual calculation work also causes calculation errors.


Advantages: Ability to see the situation in each section and in total in real time, accuracy, easy and relatively simple to update and save, allows the ability to analyze expenses and budget planning

Disadvantages: Manual process. Time-consuming. Sometimes, the attempt to schedule an update of all expenses once a week, as recommended at a minimum - fails (after all, something more urgent always falls on us, or we forget).

Self-updating expenses app

Pros: Availability, accessibility, simplicity, accuracy. All the benefits of manual registration or typing on a mobile, along with the benefits of the spreadsheet.

Disadvantages: Sometimes they are complicated and require adaptation time and perseverance; Some are free with few options and no support system, and some apps cost money (should, of course, weigh benefits versus cost); Some are out of sync between spouses (joint use is critical in tracking household expenses); Some are out of sync with a computer tracking spreadsheet (allows visual convenience of monthly or yearly spreadsheet graphs and spreadsheets, facilitates expense analysis, and allows easier planning of a monthly and annual budget for those who prefer computer work).

Automatic expense tracking app

Pros: This is the most straightforward spending tracking system—automatic follow-up without effort. Good examples are and YNAB.con.

Disadvantages: Requires access to bank account passwords and credit cards; There is difficulty in tracking the cash, which still requires self-updating.

The apparent advantage of automation is also a disadvantage. When you do not make an effort to do orderly actions on the way to economic efficiency, just as you make an effort in the diet process, there will usually not be good results over time.

In summary, The main thing is that you choose an expense tracking management tool that suits you and stick to it.

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