Track your Spending

One of the hardest things anyone can do is predict their financial future, and, no, daydreaming about winning the lottery doesn’t count! 

Our culture continually encourages us to live in the moment, to seek the instant gratification of our every desire. Unfortunately, indulging these temptations can have grave consequences, not just for our bank accounts on a day-to-day basis, but for our decision-making processes overall. 

By adopting the attitude that says, “Buy first, think later,” we run the risk of regarding money as something merely to be spent, rather than as a tool we can use to improve our lives over the long term. Before you attempt to control your spending, it’s important that you recognize any behavioral patterns you may be following. 

Let’s take a moment to review some of the typical spending behaviors displayed by today’s consumers. (And consider this fair warning: You may recognize something of yourself in more than one category.)

•  The Scout: Scouts absolutely refuse to purchase an item until they have thoroughly shopped around for the lowest price available. “I saved $9.99, and all I had to do was spend 12 hours of my time driving around to 7 stores comparing prices.” Scouts also often fail to account for the cost of their research, particularly with respect to time. 
• The Pushover: Pushovers will buy about anything that's on sale or placed prominently at the checkout counter. This type of spender makes many unplanned purchases and is drawn to items “on sale” like a bear to honey. “I may not need it, but hey, this lighted toilet seat was 50% off! ” Merchandise science has developed store layouts with Pushovers in mind. 
• The Escape Artist: This type of spender shops as a means of escape from everyday woes. “I had an exhausting day at the office, and the kids are stressing me out. It’s off to the mall we go!” This type of spending also draws on elements of entitlement. 
• The Follower: Followers shop at the best stores and purchase only the finest clothing and accessories so they can belong to the “in crowd.” The IRS would rather audit them than buy retail. This type of spender strives to be fashionable to maintain the “friends” they have. “I have a rare condition. I break out if I wear anything off the rack.” Followers will spend themselves into debt just to keep up with the Joneses. 
• The Fire Fighter: Money burns holes in this consumer’s pockets. To put out the fire, they spend, spend, spend! As soon as they get some money, it’s time to get those things they “always” wanted. “Wow. I’m so glad I got paid on the same day the mall is having a Sale on Absolutely Useless Items!” This is a typical behavior in children, but if they’re never taught otherwise, this spending pattern can last forever. 
• The Hard Worker: Many consumers today work longer and harder than ever, and when they have time off, feel that they’ve earned the right to spend beyond their means. This type of “entitled” spending is difficult to control, as frustration and impatience are often contributing factors. Feelings of entitlement frequently arise in relationships, especially marriages in which communication is lacking. One person feels that their overspending is justified by the fact that their partner has already engaged in such behavior. This type of spending can also be retaliatory in nature. 

These spending behaviors don’t happen overnight; they take time to take root and develop, and there are obviously more than the few we’ve chosen to illustrate. 

One key to managing them effectively is recognizing the specific influences that have combined to mold us and shape us into the type of consumer we’ve become. An examination of these factors is useful, and again, you may discover a bit about yourself along the way.

Tracking your spending using a home budget app is a crucial aspect of personal finance management that can help you better understand your spending habits, identify areas of overspending, create a savings plan, and decrease financial stress.

The key to successful spending tracking is consistency, recording all expenses, categorizing expenses, tracking spending against a budget, regularly reviewing your spending, and being honest with yourself.

Using the best app for tracking spending, such as a budgeting app for couples, can further increase the accuracy of your spending tracking, provide convenience, include budgeting tools, offer insights and analytics, and prioritize security.

By following these steps, you can take control of your finances and make informed decisions about your spending.