How to track expenses

I just use a credit card that I put everything on. Along with the few bank transfers for recurring expenses, that gives me a good monthly estimate.

I don’t really do further expense tracking. Nor do I have a detailed budgeting system. I just try live by a few “lazy” budgeting rules. Not sure if you can even call them budgeting, and they’re most probably nothing new for Mustachians:

  1. Try to to limit recurring expenses like subscriptions and long contracts and keep to the essentials (rent, health insurance, transport pass, internet, mobile phone/internet, gym, and of course taxes)
  2. Don’t dwell on the cost of education. It’s an investment.
  3. Food is a small everyday joy. Try to cook regularly and find a good balance between taste and nutritional values. Buy only as much as you need but don’t skimp on quality.
  4. I’m don’t like smoking, alcohol or other (non-food) drugs much, so hardly spend anything on them.
  5. Clothing needs replacement every once in a while. One wants to look decent and attractive.
  6. Think before you buy. Defer to a later date if possible and think again if you need it. Don’t buy superfluous things like clothing, furniture.
  7. Try to to shop affordable, with “value for money” mind. Wait for good deals on items that you don’t immediately.
  8. Allocate a small amount as “fun money” that for discretionary spending. No need to feel guilty about it. Maybe 300 CHF a month. I wouldn’t include food or drinks on that budget item, but do include a (roughly yearly) holiday.
  9. Save the rest and invest
3 Likes