Why is tracking spending important for financial management?

Tracking spending allows you to see where your money goes and where you might be wasting money each month. When you track monthly spending regularly, it becomes easier to make a realistic budget so that you can spend and save wisely, as well as work toward other financial goals.

How often should I review my spending?

Reviewing spending is something you do monthly or weekly, depending on how often you plan your budget. For instance, you may choose to review monthly expenses at the beginning or end of the month if that’s when you make your budget. Or you might schedule weekly spending reviews if that’s how often you get paid.

How can I categorize my expenses to get a better understanding of my spending habits?

Separating monthly expenses into essential and non-essential categories is a good place to start when tracking your spending. Essential expenses, or needs, are ones you need to pay to maintain a basic standard of living. Non-essential expenses, or wants, represent everything else that you spend money on, which is where you may be able to make some big budget cuts.

What are some common mistakes people make when tracking their spending?

Some of the most common mistakes people make when they track spending include using the wrong budgeting system to manage monthly expenses, forgetting to include expenses paid in cash, and putting expenses into the wrong budget categories. Of course, the biggest mistake you can make when it comes to tracking spending is not doing it at all.

Closet Room Ideas

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2023 was around $33K. Information current as of 2/26/24. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.

✝ To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

TLS 1.2 Encrypted

Equal Housing Lender

“Closet Room Ideas”

How’s Your Money Doing? 6 Ways to Track Your Expenses

Should You Choose a College Based on Price?

Using Your 401(k) to Pay Down Debt

What Is Zero-Based Budgeting?

7 Financial Aid Secrets You Should Know

“Closet Room Ideas”

How’s Your Money Doing? 6 Ways to Track Your Expenses

Should You Choose a College Based on Price?

Using Your 401(k) to Pay Down Debt

What Is Zero-Based Budgeting?

7 Financial Aid Secrets You Should Know

Student Loan Refinancing

Personal Loans

Online Investments

Other

Student Loan
Refinancing

Personal
Loans

Online
Investments