Here’s Why You Need Expense Tracking Software and Which One to Get

P ayday is always exhilarating; whether it’s your first salary or your monthly pocket money, getting money is often the one thing people look forward to the entire month. Unfortunately, most people end up overspending. In order to avoid that from happening, use expense tracking software and make it your best friend!

Did you know the average American overspends by $7400 per annum? It is often within the first few days of getting their wages, and by the end of the month most people are, unfortunately, and ultimately, either broke or in debt.

Why You Should Track Your Expenses

If you spend your money without ever noting down where you’re spending it, you’d be surprised by the accumulated total you spend on most things: it’s much more than you think. An evening out for drinks often turns into a weekly habit if not controlled, and “It’s just one hoodie!” turns into $100 worth of clothes bought in one sitting while shopping online.

It is quite well known that we, as humans, become more vigilant of our actions if we are to be held accountable for them. This is why tracking expenses is so incredibly important; if we know where we are spending our money, we are likely to think multiple times before spending it.

What Do I Get Out of Tracking My Expenses?

Well… Simply put, savings! The more that you are vigilant, the more likely it is for you to restrict yourself from any unnecessary spending and random splurges, especially online.

Furthermore, analyzing your own spending habits will help you analyze the ways in which you can better your habits. Are you spending too much on clothes, or maybe on takeout? Maybe it’s time to sell some used clothes, or time to start eating healthier by cooking at home. Either way, if you know where you’re spending, you can alter your habits to save money.

Knowing how much money you have left gives you a sense of stability. If all your needs are met and bills are paid, and you still have a few bucks in your account, it’s the first step towards long term financial security.

All of the above can be achieved by simply tracking your expenses, and the easiest way to do it is by using expense tracking software.

What Exactly Does Expense Tracking Software Do?

Simply put, expense tracking software is an application that allows you to input your cash inflow and outflow -that is, earning and expenditure. It gives you an accurate record of your financial habits, by documenting exactly when and what you spend your money on.

Plus, softwares are digital, which means you can take them with you wherever you go! So if you fear you may forget to note your spending, no worries! Just open the software application on your phone, and track it down so you don’t forget later.

So What’s the Best Expense Tracking Software for Me?

That entirely depends on your individual financial status and prior experience with tracking your expenses. Here’s a list that can help you get started:

Mint

Perhaps one of the most popular financial applications out there, Mint is somewhat of an all rounder. You get expense tracker, a budgeter, and credit monitor all in one. Mint also supports a large number of banks, so the chances of you manually having to add your expenses is very low (unless you pay in cash). Plus, it’s free!

However, Mint has tricky customer service, and issues are not known to be resolved quickly.

Quickbooks

If you run a small, perhaps home-based business, and need to account for your expenses, this is the software for you! Quickbooks track everything from expenses to income, can do your invoices, tax deductions, bills, manage cash flow, and even pay your employees!

However, Quickbooks is paid.

Expensify

Expensify gears its market towards more experienced business experts. Possibly the best feature offered is receipt scanning, meaning the app will automatically log your expenses from your receipt! It also has automatic credit card importing, mileage tracking, and is available for both iOS and Android.

However, although most features are free, some premium features come at a price.

The Verdict on Expense Tracking Softwares

If you’re a functioning adult partaking in capitalism, expense tracking software is for sure a must-have essential. Whether it’s on your phone or your PC, expense tracking software keeps you grounded to realistic spending, and eventually helps you build strong financial habits that take you a long way.

• This post is tagged in:

• expenses
• money
• budgeting
• software
• finances
• planning