Keep track of your expenses

Expenses can be divided into fixed and variable expenses. Fixed expenses recur every month or less frequently and are always the same amount. These include rent, medicine costs, phone bills, insurance premiums and loan repayments.

Variable expenses vary from month to month. Variable expenses include food, clothing and footwear, hobby fees and visits to the hairdresser’s. Although the sum you spend on food may vary from month to month, it is a good idea to allocate enough for it every month. Regular and healthy meals are important for your well-being. When you are feeling well, you will have more energy to keep track of your finances.

‍List your regular expenses

Make a list of your necessary, fixed expenses that recur every month or less frequently. Monthly expenses include rent, phone bills, your travel card and loan repayments. Insurance premiums, electricity bills and water bills are examples of expenses that usually recur a few times a year.

Are your regular expenses in balance with your income? You can cut down on these expenses by comparing prices, shopping around for better deals, moving to a more affordable apartment or reducing your water consumption, for example.

Review your spending

Keeping track of your spending helps you see where you spend money and in which situations you could make more economical choices.

You can examine your spending by keeping a spending journal or by reviewing your spending afterwards based on your transaction history. There are also expense tracker applications on the market that analyse your bank statements or purchase receipts digitally.

Group your spending into categories, such as food, fast food, clothing, cosmetics, cigarettes, alcohol, gambling, hobbies and streaming services. Choose which categories you wish to keep an eye on. How much money are you spending on different things a month?

Compare your spending from month to month. Which expenses keep recurring? Are you spending more money on some things than you thought?