Do you track your expenses? Do you spend less because of it?

[awakenedsoul]

I track my expenses each month. I aim to spend $1,000. a month, but generally end up spending about $20,000. a year. I still shoot for the low number, just as an exercise. Tracking has really helped me to cut out non essentials. It's also freed up some money for things I thought I couldn't afford: theater tickets, music lessons, and travel. I have less spending categories now. I cut out cable t.v., switched to public transportation 6 days a week, stopped buying books, and started shopping for needs at thrift stores.

How about you? Do you track? How has it helped you?

[Simplemind]

We do, at least for now. My DH had a stroke Thanksgiving 2012 and lost his job February 2014 along with our insurance. For 9 months (until he was approved SSDI) we lived off my pension and our savings. Due to the COBRA payment being almost as much as my pension check we pretty much locked down on our expenses until we knew that we would be having a set amount coming in. That 9 months was brutal because although I had saved for a rainy day I hated taking money out of savings for monthly expenses. Now that we have a set amount coming in every month we have been tracking it to make sure that we stay at it or below.

[ToomuchStuff]

I do track and did start to spend less. I think now, after tracking a few years, I tend to spend about the same. (but tracking and some other stuff made me examine and reexamine everthying)

[awakenedsoul]

Simplemind, I'm glad you were prepared. I do the same. You just never know what's going to happen.

ToomuchStuff, I spend about the same each year, too. Although last year I let it slide, and I went over budget by $1,600. I was able to make up the money this year, though.

[Teacher Terry]

I also track expenses & it has helped me to stay within our budget.

[Aqua Blue]

I track expenses. I actually enter each purchased item line by line. I could go back and tell you how many of pounds of say rice I have purchased in the past 15 years and if you really wanted more info I could tell you what days I purchased it. lol. I live on a very small amount of money and need it to work as hard as it can for me. Sometimes I find myself not buying something just because I feel to lazy to write it down when I get home. I find that my leaks aren't on the big things, it is on many small things, so tracking expenses helps me stay focused on those small things.

[Gardenarian]

No. I tried and it made me crazy. We just spend as little as we can.

[Kestra]

Yes, I track. Have been tracking pretty much to the penny since 2003. Does it save me money? I have no idea. I guess I'd have to stop tracking to figure that out. And then I'd have to do some type of tracking again to compare the new numbers to the old numbers. So for various reasons I won't be stopping. I honestly don't think it would affect much because I am careful to think about every purchase. I really like the tracking regardless so I can see patterns in spending, inflation, etc, especially when we get closer to retirement.

[Blackdog Lin]

Yeah, I track, but since I don't budget I am like Kestra above - I don't know if it really saves me money or not. We just generally spend as little as possible on our wants and needs. My tracking is I guess only an after-the-fact record to show me exactly where what we spent, went.

[goldensmom]

I track every penny spent not so much to save money but it makes me think twice about a non-essential purchase knowing that I have to record the purchase. I've been doing this at least 15 years and I can go back see how much prices have risen over the years which is way more than our income has risen.

[awakenedsoul]

These are great answers, thanks. I should really hang on to my notes. I usually throw them away at the end of the year. It's weird, I've always spent around $20,000. a year since 1982. Back then I was renting with a roommate, and now my cottage is paid off.

[gimmethesimplelife]

I track every penny spent not so much to save money but it makes me think twice about a non-essential purchase knowing that I have to record the purchase. I've been doing this at least 15 years and I can go back see how much prices have risen over the years which is way more than our income has risen.I bet this last is definite incentive to question if any purchase is really necessary, seeing it right there how wages have not kept up with the cost of living.......Rob

[catherine]

I'm obsessive with tracking expenses. (Since I was in college--keeping little memo books with expenses written in each day and tallied weekly. Now I use YNAB and Mint)

I think it's more of a control thing, because I don't think it does help me spend less, frankly. Mainly because DH is what you would call "reluctant spouse" in Dave Ramsey lingo. But it does help at tax time.

[awakenedsoul]

It's still eye opening for me, because something unexpected comes up every month. I like being able to shift categories. Clothing isn't important to me anymore. I can wear what I have. I spend a lot on food, but I think it's worth it. This month I splurged on a ticket to go see The Book of Mormon. I'm more into experiences now than things.

One of the girls in my sight singing class ran to Starbucks on the break. I thought to myself, "I'm way too cheap too buy coffee at Starbucks anymore. It's coffee in a thermos, all the way." But, I got my own Starbucks beans on sale at Costco, and made coffee in my 15 year old stovetop espresso maker. I guess I have champagne taste on a beer budget. I'll probably track forever. It keeps me in line.

[Teacher Terry]

When I said I tracked I know where the $ goes but I don't track every dime. Then I read Spartana's explanation & realize I do what she does. Our pensions cover all fixed expenses & daily living however, our savings & $ we make working p.t. cover everything else that is optional that we want to do including saving more $.

[awakenedsoul]

I'm starting to spend more on groceries. I think I need to limit that amount and eat up what's in the cupboard and freezer until the next month. I used to just go to Costco once a month. Now that I have a smaller refrigerator, I end up going once a week. I also end up spending much more, because I think, "Oh, I need this, and that..." I should just stick with cash.

[Teacher Terry]

We only grocery shop once per month which helps us save $. It is easy to think you need something when you are in store. Of course we have to pick up fruit/milk etc in between. We both like working p.t. for ourselves but I guess when that changes we will need to be more frugal:|(.

[awakenedsoul]

Yeah. I should try that. I actually just added up my March expenses. I started tracking again in January, and guess what?

Jan: $ 1,142.00
Feb: 1,072.00
March:1,050.00

This shows me I need to keep tracking! This doesn't count the property tax bill that I already paid in Jan. I had that money set aside. My grocery total was still in budget. ($60.00 a week.) I was just afraid it was going to be more with the extra trips to Costco. Tracking what I spend does something to me, subconsciously. It's like I keep a mental tab. I think as long as I stay in budget, I'll continue to stockpile the groceries. It will help for this month. I can eat out of the cupboards, since I spent extra on bike repair and a ticket to the theater...

[Rachel]

Yes, I track. I use Mint---it definitely has helped me to reduce my spending on clothing and books. I shudder to think about all that information going online---it is supposed to be secure but I think anything on the internet can be hacked. Still, it's been super helpful at tax time and it's helped me control my spending.

[awakenedsoul]

I used to spend a ton of money on books. That's back in the days when I had cc debt and shopped at Whole Foods. I really had my head in the sand! I think I was in denial. Now I use the library. I don't really need many clothes now. I love what I have, and the clothesline makes things last much longer. The tracking really showed me where I could slash...

I feel the same way about Mint., Rachel.

[reader99]

I track every penny in an Excel spreadsheet. I have to. It's too easy to overspend if I'm not accountable to myself in a spreadsheet. It also shows me where I am buying stuff, and then I can re-question every item and look again for alternatives.

[awakenedsoul]

I know. It's made me much more aware. I just got an email saying Webs is having a clearance sale on yarn. But, I know I have yarn I bought from their last sale in my yarn stash. Enough to make two sweaters. So, I won't even open the email...

[jp1]

The best thing we ever did for our grocery budget was to move across the street from Safeway. No more walking all around the store saying "we need this or that" only to get home and find that we already had 5 this and that's already. Now if one of us is making dinner and we don't have something we just run across the street and buy that one thing. We go to the store a lot more often but never for more than what we really truly need and will use.

[Flic]

It took me a while to get into the habit but yes, I always keep a track of everything I buy, and do my household accounts each Sunday evening.

[awakenedsoul]

That's great jp1. How convenient. We used to have an Albertson's a mile from here. Unfortunately, they closed. It was nice to be able to hop on the bike and go pick up what I needed. Now my stockpile is working for me.

Flic, Wow! You tally things up weekly! I'm impressed. I do it monthly, and I often procrastinate. Am seeing that tracking keeps me "on track", financially.

[lucas]

Hi there,

i've been tracking pretty comprehensively for about two years... only problem is I havent reduced my spending... I just go 'oh, so that's where all the money went!':|( .... anyway, now I'm actually starting to cut down for the first time.... it is un-bel-eev-ab-le... how much money I spend on coffee.... sheesh!

[awakenedsoul]

lucas,
Your post made me giggle. It's very eye opening to get honest about where all the money went. Just curious, (if this isn't too personal,) how much do you spend on coffee? Is it coffee out at a cafe? When I first moved here I got a job at Starbucks because it was too late in the school year to get a teaching job. One of the girls I worked with had been spending $80.00 a week on coffee drinks! She decided to get a job there, since then she would get free coffee! (She was a college student.)

I buy coffee beans in bulk at Costco. I recently cut my consumption in half. It's reduced what I spend on coffee, soy milk, and milk. I should figure it out sometime. I make my coffee on the stove in an Italian espresso maker. It's delicious.

[rodeosweetheart]

This is such a helpful thread; I have read it twice now and want to start tracking again. I have not done so in a while.
First, it tends to really bum me out and scares me, as I feel I can't keep up with the cost of things. So I fight that with tracking; and yes, I definitely spend less when I track.
We went back to envelope system 2 weeks ago in hopes of cutting spending. Everything has gone up so much!!

I know I can[t track with a computer program--for those of you who track on paper, what works for you? I have tried a little book and also index cards, and going to try the index cards, because I can throw a few in my purse and then I can add them up once a week or month by category.

I need a new system. . .

Awakened, you said you did not track the tax bill--so do you just count cash, or how does that work? That's one the questions I struggle with.

Like last week spend $453 at the vet and on Monday have to spend $600 on my car, tires and brakes. That's the kind of thing that really makes me feel depressed, like I can't keep up--I really admire anyone who can get by on spending $20,000 a year, and I need to make changes.. .

[awakenedsoul]

rodeosweetheart,
Thank you. I do add the taxes in at the end of the year, just not for my monthly totals. I keep the big bills on the side. (I could divide the total by twelve, I guess.) The thing for me, is having the emergency fund makes me not freak out when I have a car repair, or a home repair. (I budget $3,000. a year for the house, because it's an older home.) Or like you said, an expensive vet bill. So much of it is psychological. It was much harder when I was living paycheck to paycheck, and didn't have an emergency fund.

Part of the reason I can live on $20,000. is because I stay home so much! (I don't have to drive to five different locations teaching anymore.) I also can take the bus and ride my bike for errands. I'm probably going to just have one dog (instead of two,) in the future. I don't miss t.v. and if I need to, I might switch to using free Internet at the library. It really is all the little things. I even use flannel sheet squares that I've sewn out of old sheets instead of t.p.! I'm also eating much less meat and more pasta, brown rice, and casseroles. It all adds up! The fruit trees really help, too. There are people who spend much less than I do, but I feel good about this amount. (for now.)

[Teacher Terry]

Everything is going up in price which makes it hard. Our health insurance for 2 people is now $10,000/year. Every 2 years the state raises it significantly for retirees. I have a budget notebook and keep track of expenses there.

[awakenedsoul]

$10,000. a year!!! Ouch! If you don't mind me asking, how old are you? That's a good point. That's an expense that will keep rising. Right now I pay $120.77 per month. But, I receive a subsidy with the Affordable Health Care Act. (They won't let me buy a catastophic policy anymore.) If I book a well paying show, it will be three times that amount.

[iris lily]

Everything is going up in price which makes it hard. Our health insurance for 2 people is now $10,000/year. Every 2 years the state raises it significantly for retirees. I have a budget notebook and keep track of expenses there.

What about the Obamacare exchanges, is that cheaper?

[Teacher Terry]

I will be 60 in a few months & my hubby is 55. We are in a catch 22-can't get subsidies from ACA if we are offered insurance thru former employer. Without subsidies decent insurance is more then what we are now paying. If we leave the state insurance we can't get back on. Also once I am 65 I have to go off state insurance but my hubby will have to stay on and his will be 2/3 instead of half without me. He has cancer and I have some chronic conditions that need meds so have to have good insurance. Good thing we both like working p.t.

[awakenedsoul]

Wow, that's intense. I'll have to keep that in mind as I get older. I guess the one plus in that you don't have to pay state tax in NV. I don't know if that helps your budget much...
Yesterday I switched my phone plan with Jitterbug from 1,500 mins. to 700 mins. a month. That will save $120. a year. Am going to try to get my Internet down to $30. a month on Monday. Am thinking of asking a neighbor who's a single mom if she wants to split the garbage bill and share trash cans. I only have one bag of garbage a week. That would save another $!2.00 a month. I do a lot of composting. I can drive to the recycling place if her bin is full.

[Teacher Terry]

2 years ago I went thru all our bills to cut etc. Here they have a law that each house must have it's own trash can. We had to pay trash once on a house we were selling that was vacant. When I semi-retired 2 years ago the plan was for my hubby to keep working. Then unexpectedly he got laid-off & could not find f.t. employment so had to take his pension early with a penalty and it took him a year to find p.t. work. You just never know what will happen. OUr car insurance is really cheap now because we have the plan for each car that we don't usually drive over 5k a year. That made a huge difference.

[awakenedsoul]

I'm still tracking and it's eye opening. I've cut way back on meat and chicken. Am making meals like tuna and noodles, and salami and cheese sandwiches on homemade french bread. Will see if I can grow more veggies this season and cut back my box from the organic co op to once every three weeks or so. They do sell fruit in bulk, which helps. Just got a case of nectarines for $12.00. That should last me a month. Had a toilet repair bill for $420. yesterday. I've finally learned to plan ahead for repairs and unexpected emergencies. So, far, I'm still on track for spending under $20,000 this year...