Income and expense tracking is necessary to keep ones money management in control.
Money management means what?
It deals with spending money wisely in accordance with ones income and financial goals.
Here it is important to note this phrase “spending money wisely”.
What’s so important in this phrase?
Only if one can learn to spend money wisely, monetary success in life is almost guaranteed.
How one can spend money wisely?
Simple, by developing wise money habits.
Income and expense tracking is one such habit which is difficult to master, but has incomparable benefits.
How income and expenses tracking is helpful?
What is the bigger purpose of tracking ones income and expenses?
Income and expense tracking will lead to more savings.
Higher savings mean more spare cash.
This spare cash can be invested to earn higher returns.
Higher returns means, faster realisation of financial goals.
There is a strong relationship between income, expense, savings, investment & financial goals.
Realisation of all financial goals has its roots somewhere in “income and expense tracking”.
People who are not accustomed to track their expense, tend to spend needlessly.
But people who regularly track their expense, has almost a cent percent chance of financial success over a period of time.
Yes tracking expense regularly, has such powers.This is one of the best habits to develop in life.
People who has done it regularly in the past, can vouch for its effectiveness.
I have been personally doing it using a tradition excel based expense tracker.
Its almost a decade now that I have been doing this.
One of the most evident advantage of expense tracking that I have experienced is, I know exactly “where and when my money left me“.
This awareness always keep me sensitive and resistant to needless spendings.
Moreover, it also paves my way to attaining financial independence in life.
How to do income and expense tracking using mobile app?
In last few years, my schedule has become busier.
Hence keeping track of all expenses was getting tougher. What was the problem?
The problem was “data entry”.
Almost all of my data feeding was done on laptop. Hence accessibility was becoming a limitation.
If I wanted to enter my expense data on move, I was not able to do it.
I also tried several mobile apps, but none gave me the confidence like excel.
Most of the mobile apps were either complicated or inflexible.
But in my pursuit of finding a decent mobile app, I finally found one.
Though its functionality is no where close to my excel sheet, but it works fine for me.
Now I am using both, my excel sheet and also this mobile app.
This mobile app helps me to feed the expense & income data as it happens.
These days there is no delay. Hence, my struggle to recall old expense (whose data entry was missed) is now completely gone.
Thanks to this mobile app.
Which is this mobile app?
It is called monefy.
It is available for Android and iOS devices.
People who use Windows phones can also download monefy from its app store.
It is one of the most simple mobile apps, whose main purpose is to keep a record of daily expense and income.
Generally, it takes me about 10-20 seconds to feed a single data. I keep entering data on daily basis.
Then on weekends, I download the data from app, in csv format.
I use this downloaded data to update my excel sheet.
The Monefy app that I use is its pro version. It is available on payment of just Rs.150.
Though monefy is also available in free version, but for me its pro version was useful. Why?
I play a lot with the income and expense categories. This could be done only in pro version.
Anyways, the pro version did cost me just Rs.150. I must say it was value for money.
How to use monefy mobile app?
Usage of this mobile app is easy. Anybody who has even a basic know-how of mobile, can use this app.
One can use this app for the following purpose:
- Date wise expense entry.
- Date wise income entry.
- View summarised reports.
#1. Date wise Expense Entry
The above infographic is self explanatory. Follow the above 4 steps and data entry is done.
Nothing more needs to be done. One main-screen, and two pop-up screens, that’s it.
If you think this is too simple, reconsider. You will have to enter data’s day after day.
On weekends, multiple entry will be required.
[Note: same procedure can be followed to enter income related data]
#2. How data looks after entry
The visual interface is nice. There are 2 views in the reporting section.
First one is a summarised report. It shows expense in percentage under various categories.
This view gives a clear visualisation of, which category is the biggest consumer of money.
Second view is a detailed report of all income and expenses, shown under individual heads.
It is in the detailed report where one can see and edit individual expense/income entries.
#3. What is the best part of this mobile app?
The focal point of this mobile app is the Green Button reading “Balance”.
What is this balance? Balance = Net of Income and Expense.
Balance = Sum of All Income – Sum of All Expenses.
Ideally, this “Balance” should match with your outstanding in your actual bank-balance.
If all entries are done correctly, there is no reason why “Balance” of this app will not match the actual bank balance.
The above image shows report for the month of May and June.
- In May – The Balance was Rs.100,000
- In June – The Balance was Rs.120,000
This type of focus on “Balance” will give an idea, if one is saving fast enough or not.
Give a target to self. Like, “saving must increase “20% per month”.
This mobile app will make it extremely convenient to keep a track of this target.
By default “cumulative net balance” will not be visible in this mobile app.
One needs to go to the setting and activate this functionality. Go to Setting > Check “Carry Over”
Food, shelter, education etc is necessary for good health.
Likewise, proper “money management” is necessary for good financial health.
Income and expense tracking, on daily basis, is an essential part of money management.
But such kind of tracking, day in and day out is not easy.
Mobile apps like monefy can simplify the process of data entry to a great extent.
Moreover, the reports generated by such mobile apps gives great insights into our own spending habits.