If you’re looking to save up for a home in the next year, monthly expense tracking is a valuable tool that can help you along the way.
Check out our tips on monthly expense tracking and learn how it helps you save:
- Find a tracking method that works best for you. Whether you decide to make your own expense spreadsheet or use an app, there are plenty of different ways to document your spending. If you’re a fan of spreadsheets, consider downloading a free template online so you don’t have to build one from scratch. If an app sounds more up your alley, Mint is one of our favorite budget trackers – it’s free and simple to use.
- Identify your income. When analyzing your finances you want to look at what’s coming into your wallet vs. what’s coming out. Figure out how much is in your paycheck so you know what you have to work with.
- Categorize your expenses. As you track your costs, it’s beneficial to group them into different categories. This gives you a broader idea of how you’re spending your money. Typical groups include housing expenses, groceries, restaurants, and shopping; but choose whatever categories work for your lifestyle.
- Hold yourself accountable. Consistency is key when it comes to tracking your expenses. Get in the habit of actually documenting your costs each time you’re swiping your card. It may not be your natural reaction at first, but the more you do it, the more second nature it will become. And when it becomes a part of your routine, the more mindful you will become of your spending.
- Identify what needs to change. As you keep a record of your payments, you may also notice some good (and bad) spending habits. Maybe you’ll realize that your Uber payments were way higher than expected. Or maybe your overall utility bill will shock you. Once you can identify these areas of concern, you’ll be able to make appropriate adjustments to set your savings up for success. Maybe you’ll decide to start taking public transit more. Or maybe you’ll become better at not keeping the AC on when you don’t need it.
Purchasing a condo is a big financial move, and it requires intentionality and savings. With these monthly expense tracking tips, we hope you feel more confident moving forward with this process. When you’re ready to take the next step toward condo ownership, contact the Luxury Living Chicago Realty team or click the button below!
