The Value of Tracking Your Spending
- Ryan Gilbert
- May 5
- 3 min read
Finances and Mental Health - At Breathe & Eat Chocolate we like to write scholarly articles on new scientific discoveries, new mental health subjects and a few healthy food recipes. But in this article, we are going into a slightly different direction, a topic connected to mental health and inner peace: finances.
I will highlight a few key strategies from a new book, The Algebra of Wealth by author Scott Galloway. In this book, Galloway gives the readers creative solutions on how actions can turn into economic security.
Reading this book over the spring caught my attention. There are not too many resources out there to help others with their finances, unfortunately. This is why I wanted to share some strategies that have worked for me over the past decade.
Don’t get too bogged down with technical terms such as: amortization, debt ratio, compound interest or analysis of variance. You don’t have to be a finance nerd to control your expenses and in-turn, create new healthy financial habits.
The OG Tool to Track Spending
One of the most important concepts connected to your time and a healthy weekly habit is tracking your spending. Galloway expands on this subject saying:
“Spending determines savings (it has an effect) and it’s what you actually do (it can be affected).”
Tracking your spending is not fun, but it’s among the most critical behaviors you need to develop to find peace with your finances.
I personally use the old-fashioned Excel spreadsheet with columns. This includes, date, spend description box, the amount and formulas to calculate the totals so I can analyze my spending daily. The spreadsheet gives awareness, gives the real data on what is actually spent as opposed to what I think is spent. This allows you to manage your finances in real-time, an intermediate step of saving a few dollars. And instead of just looking at an app, you will actually feel the cost of your spending which is the whole point of tracking your spending.
Data Entry Day
A good day to input new data and control your spending is your actual pay day when your good endorphins are present and you are feeling good. On that Friday or Saturday morning, add your pay, organize your bills, be emotionally engaged and remember this is one of the few things you can control with regard to your finances. Grab some strong coffee, analyze your monthly bills, cancel any monthly or annual subscriptions that are deemed unnecessary.
This could be a fun activity. Seeing how you value certain things you are currently tracking. Ask yourself, “is that $10 coffee worth buying everyday?” Or is it something I just need to do one day a week to treat myself and save $40 each week by decreasing the frequency of a habit. Turn this time into spending discipline. As Galloway says:
“What gets measured gets managed.”
And observing these spending patterns eventually will lead to changed behavior.
To echo Galloway, if you spend time doing just one thing with your finances, create a habit of tracking your spending. Not what you think or plan to spend but the true dollars going out the door every day which gives us great awareness and disciple of our consumption and leads to control.
As time goes on, the healthy habits could turn into other more complicated aspects of finances such as income allocation, your future budgeting and accessible savings. But a good place to start is tracking your spending.
Excel Spreadsheet Resource Video
Please see resource and how to create an Excel spreadsheet and track your spending, Accounting by Audra:
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