Lowering Expenses by Keeping Receipts
By Matt - Sunday, February 22nd, 2009
When times start getting tight the very first thing people will do is to start cutting back on their expenses. Unfortunately a great many people don’t know where all of their money goes – they inevitably loose track of a few dollars here and a few dollars there. Although this is a generalization I believe that it’s very true since it happens to me the moment I stop tracking my spending.
To help me track my spending I keep all of my receipts and ask for them all the time. I don’t keep these receipts for tax purposes or anything of the sort. I keep my receipts to track my spending to the penny, and it helps.
How I track my spending with receipts:
Step 1 – Get the receipt
Every time I spend money I ask for a receipt – it takes a bit of time to get used to asking for one but most stores will give you one when you ask (assuming they don’t give you one right away).
Step 2 – Track the Spending
Using the receipts I input them into spreadsheet so I can see exactly where my money has gone. The receipts help keep everything honest and free of a poor memory. Rather than thinking I spent about $50 for groceries I will know I spent exactly $55.43. This level of detail can be very useful
Step 3 – Adjust budget
Having the receipts allows me to see real numbers and adjust my budget appropriately.
Some people advocate using one trackable source for their spending such as debit or credit cards but I find that small purchases get lost in the shuffle.
The only drawback to using your receipts is the fact you have be somewhat vigilant in putting the receipts into whatever tracking system you use. If you let them collect for too long the sheer amount of receipts can prevent you from tracking them.
Keeping my receipts has helped me keep my spending under control and allowed me to adjust my budgeting to be more realistic.
This entry is filed under Budgeting and Planning, Uncategorized.
One Response to “Lowering Expenses by Keeping Receipts”
1 Evan Powell says:
April 27th, 2009
at 6:54 pm
I used to keep a written record but then I would always have trouble finding a pen and despite promises to myself would forget to write it down later.
Then I tried receipts but sometimes I wouldn’t get one (tip, bar, etc) and would forget to write it down.
I then started using my PDA/Smartphone to keep it all but this became cumbersome so I didn’t ‘feel like’ typing it.
Once I got a blackberry I started emailing myself at time of sale, this system worked very well.
I now use a website called Xpenser. I can input data via www site, email, IM, SMS. There are also ways to do it via voice but this costs money. Once a week I export the records into a QIF format (works with Quicken, Money and a few others). I use the SMS method, I have a button programmed to start an SMS to a special number. Then type in something like “exp food $20″ and hit send.
Anyway, people should use the method that works best for them.
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