How to Plan and Track Your Finances

Suppose you ask anyone about more ingenious money management techniques. In that case, they will first suggest budgeting and tracking your finances. However, this is easier said than done. Some people might be pros at budgeting and planning, but others need assistance. Thus, the next suggestion is to have a monthly planner for budgeting.

The fact is merely having a monthly planner for budgeting only partially solves the problem. You must set some practices and rules to successfully and efficiently manage your finances. This article will highlight all these techniques to gain control over your money.

1. Set Financial Goals

Set Financial Goals

Before you set out to create budgets and save money, it is essential to understand WHY you’re doing what you’re doing. Undoubtedly, we all need a sound reason or basis for doing things, and budgeting is no different.

It is crucial to set financial goals laid down before you so you have a clear understanding of your direction and your starting and ending points. Setting financial goals is a practice where you understand what you wish to do with your money and then lay out a plan to execute those objectives.


1. Make SMART financial goals.

SMART is a famous goal-setting framework that has helped countless people achieve their goals. SMART stands for specific, measurable, achievable, relevant, and time-bound. You must set clear financial goals. For example, you are saving $10,000 for a down payment.

Secondly, ensure a measurable goal, such as tracking your progress monthly.

Next is to make your goals achievable. Goals are possible when realistic and according to your income and expenses.

It is crucial to set relevant financial goals. You might never fulfill your goals if your goals do not align with your priorities or current financial condition.

Lastly, your financial goals must be time-bound. Restricting goals in time provides the necessary motivation to complete them and maintains focus.

2. Divide your goals into smaller chunks.

Remember to break down your financial goals into smaller, more manageable pieces. For example, if you aim to save $10,000 for a down payment, you might break it down into saving $1,000 monthly for ten months.

2. Have Your Priorities Sorted Out

Have Your Priorities Sorted Out

Having clear set priorities is crucial when budgeting or tracking finances. This helps you to focus on important things and prevents overspending on unnecessary expenses. It is also effective in allocating your resources accordingly. In other words, it allows you to make informed decisions about how to spend your money, save for the future, and invest for long-term goals.

Budgeting or financial planning requires setting priorities to work. You may be diverting from your focus or simply losing motivation. As long as you have your priorities right and sound, you can rest assured that you have taken the first step in effective budgeting.


1. Identify your values

Start by identifying your values. What matters most to you? Is it your family, career, health, community, education, or something else? Once you understand your values, you can prioritize your spending and save accordingly.

Whatever your priorities are, make sure you’re clear on what they are and what you hope to achieve.

2. Consider your short-term and long-term goals.

Think about what you wish to achieve in the short and long term. Short-term goals usually span six months to a year, while long-term ones span from 5 years and beyond.

Short-term goals include vacationing, paying off credit card debt, building an emergency fund, etc. Long-term goals include saving for retirement or starting a business. Your priorities should be aligned with your goals.

3. Determine your needs versus wants.

Needs are necessities like food, shelter, and clothing, while wants are things that are nice to have but not essential. You must prioritize your needs before budgeting. These everyday necessities deserve more attention than wants, usually driven by competition or peer pressure.

4. Consider your lifestyle

Think about your lifestyle and the things that you enjoy doing. For example, do you like to travel? Do you have expensive hobbies or interests? Include these things in your financial planning since they influence your spending habits.

5. Be flexible

Be open to adjusting your budget and financial plan as needed to reflect your changing circumstances and preferences.

Identifying your priorities is an essential step in budgeting and financial planning. By specifying your values, you can develop a budget and financial plan aligned with what’s most important to you.

3. Invest in a Reliable Planner App

Invest in a Reliable Planner App

Investing in a monthly planner for budgeting is helpful in managing finances. But, contrary to popular belief, you don’t need a specific budget planner to track your finances and create budgets. Instead, you can use any reliable monthly planner for budgeting if it includes useful features such as week and month views and prioritization.

Monthly planners are a great way of staying organized and focused. A monthly planner for budgeting can help you organize your finances and track your income, expenses, bills, and savings.

Additionally, you can use your planner to create a budget for each month. This can include tracking your income, setting spending limits for each category, and tracking your progress toward your financial goals. Finally, you can track your bills and avoid late payments too.


1. Choose a planner that works for you.

Many different types of planners are available nowadays with unique features and tools. Pick the one that best fits your needs and fulfills its purpose. Look for a planner with enough space to track your income, expenses, and bills.

We recommend using a planner app that has prioritization and team management tools included. You might think that team management tools work only for businesses and teams.

In reality, this tool works equally well for domestic use, where you can add your family members or financial contributors so they can stay connected and updated with the economic situation and contribute by adding or logging their expenses.

2. Use a color-coding system.

Consider using a color-coding system to differentiate between different spending categories in your planner. For example, you could assign a red color for bills, green for groceries, etc.

3. Be consistent

Set aside time each week to update your planner and track your progress toward your financial goals.

4. Be realistic

It is crucial to be realistic when setting your budget and financial goals. Ensure you don’t set yourself up for failure by putting in too ambitious goals or misunderstanding your expenses.

A monthly planner can be a valuable tool for budgeting and managing finances. By using it to track your income, expenses, bills, and savings, you can better understand your financial situation, set realistic goals, and make informed decisions about your spending and saving.

4. Determine Your Monthly Income

Determine Your Monthly Income

Determining your monthly income is essential in creating a budget as it gives you an idea of how much you can allocate towards your expenses, savings, and other financial goals.

A general household may have single or multiple sources of income. For instance, family members might each have a job and a family-run business. Some members have independent earnings and contribute a portion of their income to the household.

Therefore, it is essential to consider all your sources of income. There may be fixed payments or variable ones. Fixed income includes salary or regular wages. Multiply your gross income by the number of pay periods in a month.

For example, if you receive a bi-weekly paycheck, multiplying your gross pay by determining your monthly income can be more challenging if you have a variable income, such as freelance income or irregular commission.

In this case, you should estimate your income based on your average earnings over the past few months or look at your lowest expected revenue for the upcoming month.


1. Include all income sources.

Make sure to include all sources of income, small or infrequent. Every little bit counts. Include fixed and variable remuneration, salaries, rents, etc.

2. Deductions

When determining your monthly income, make sure to account for any deductions, such as taxes, Social Security, and other payroll deductions.

3. Gather your income statements.

Collect all your income statements for the past few months, such as pay stubs, bank statements, and tax returns.

4. Account for any changes

If your income has changed recently, account for those changes when calculating your monthly payment. For example, if you received a raise or started a new job, your income may be higher than what you earned in previous months.

5. Adjust for irregular income.

Calculate an estimated monthly income based on your average earnings over the past few months if you have irregular income, such as freelance or commission-based income.

By accounting for all your sources of income and deducting any necessary taxes and other payroll deductions, you can get a clear picture of how much money you have available to allocate towards your expenses, savings, and other financial goals.

5. Track and Record Your Expenses

Track and Record Your Expenses

If you want to up your budgeting game, the critical practice is to track and review your spending regularly. This helps you stay updated with where your money went and when.

Additionally, when you track your spending, you can see how much you have already spent and how much you have left in your budget. You can identify areas to cut back on or change your spending habits.


1. Categorize your expenses

Start by categorizing them into categories, such as groceries, housing, transportation, entertainment, etc.

2. Choose a tracking method.

You can use many different methods to track your expenses, such as a spreadsheet or a budgeting app. Choose the best way for you, and make sure you use it consistently.

We recommend using a monthly planner for budgeting to help you track expenses for the entire month and view your spending. Savvy planners offer weekly views, too, so you can have a bird’s-eye view of your weekly financial activity.

3. Record every expense

You might think that the penny you gave to a beggar or the tip to the server will make little difference in your overall budgeting or financial tracking. The truth is, when you record your expenses, you must log ALL your spending.

4. Track expenses instantly

Track your expenses in real-time as soon as you make a purchase. This will help you remember to record a fee and ensure you have an accurate spending record.

5. Review regularly

Take time each week or month to review your expenses and compare them to your budget. This will help you identify areas where you may need to adjust your spending and stay on track toward your financial goals.

6. Compartmentalize Your Money

Compartmentalize Your Money

One of the surest and best ways of budgeting is to allocate different categories or “compartments” to your income. These categories can have sub-categories, but the main idea is to assign a set amount of money to each section of your budget every month without fail.

Categorizing expenses is essential for financial tracking and budgeting since it helps you understand where your money is going and identify areas of over or underspending. In addition, by categorizing your expenses, you can see where you spend the most and identify trends or patterns.

For example, you may find that you should spend less on eating out or entertainment, which can help you adjust your budget.

By organizing your expenses into categories, you can track your spending more efficiently and see how much you spend in each category. This can help you stay on track with your financial goals and make informed decisions about your money.


1. Dedicate a set amount to each section.

Allocate a set percentage of your income to relevant categories.50/30/20 is a famous rule where you spend 50% of your income on your needs, 30% on your wishes or wants, and save the remaining 20%.

Some people recommend the 40/10/50 rule, where 40% goes to needs, 10% to wants, and 50% to savings. What percentage you set for any category depends on your current financial position and your financial goals. If you wish to save more, allocate a significant portion to your savings, but make sure not to compromise your daily needs.

2. Using separate accounts

Consider using separate bank accounts for different categories of expenses, such as a separate account for bills, groceries, or entertainment.

3. Using cash envelopes

Consider using cash envelopes for different expenses. Take out money from relevant envelopes for expenses such as groceries, bills, etc.

In summary, categorizing expenses can help you identify spending patterns, track expenses more efficiently, and prioritize spending. Using separate accounts, cash envelopes, or budgeting software can help you categorize your money and stay on track toward your financial goals.

7. Review Your Spendings Regularly

Review Your Spendings Regularly

Regularly reviewing your spending is crucial in budgeting and financial tracking because it helps you stay on top of your finances and adjust as needed. Periodically checking your spending is especially helpful in identifying areas of overspending. It also lets you adjust your budget accordingly.

Regular reviews help monitor progress toward achieving your financial goals. Additionally, it helps to accommodate any changes in your income, such as a new job, raise, or even an emergency expense.


1. Set a regular review schedule.

Set a consistent time window each month to review your spending and make any necessary adjustments to your budget.

2. Use a monthly planner for budgeting.

Budgeting planners can make it easier to track your spending and analyze your budget over time.

3. Compare actual spending to budgeted amounts.

Compare your actual spending to your budgeted amounts to identify areas where you may overspend.

8. Plan Ahead

Plan Ahead

While you keep a close eye on your current spending habits and finances, it is essential to have a plan for the future too. It is intelligent to save some money for rainy days or allocate it to unexpected expenses to avoid problems in budgeting.

Additionally, keeping your farfetched dreams and ambitions in mind is equally important as you plan your life.


1. Invest in a savings account.

A savings account is where you can deposit money and earn interest. The interest rate varies according to the bank and account type.

Investing in a savings account is a good idea for several reasons. Firstly, it provides a safe place to store money while earning interest. Unlike investing in stocks or other financial instruments, your money is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor per account, providing security for your funds.

The interest earned on your savings can also help your money grow over time, even if the rate of return is relatively low compared to other investment options.

Finally, a savings account is easy to use and access. You can withdraw money from your account at any time. In addition, you can manage your account online or through mobile banking apps.

2. Have a retirement plan.

A retirement plan helps you save money for your retirement years. Some common retirement plans include 401(k) plans, individual retirement accounts (IRAs), and pension plans.

There are several benefits of investing in a retirement plan. First, a retirement plan helps you save money for future retirement needs. Secondly, retirement plans offer tax benefits. Many retirement plans allow you to deduct your contributions from your taxable income, which can reduce your overall tax bill.

Not only this, retirement plans provide financial security during your retirement years. By saving and investing in a retirement plan, you can accumulate a significant amount of money over time, which can help you maintain your standard of living in retirement and cover your expenses.

Wrapping Up

Budgeting and tracking your finances can seem overwhelming. Still, the right tools and mindset can make it easy and enjoyable. Using a monthly planner for budgeting can help you stay on top of your expenses, save money, and achieve your financial goals.

If you’re looking for a premium planner app and software that offers a variety of planners for different purposes, we recommend Week Plan. With Week Plan, you can easily use a monthly planner for budgeting, staying on top of your expenses, and achieving your financial goals. So why wait? Start using Week Plan and plan your financial future!

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