How to Use an Income and Expense Worksheet to Track Your Spending

Photo Courtesy: Stígur Már Karlsson/Heimsmyndir/Getty Images

When you think of personal financial planning and money management, the first thing that might come to mind is that you’ll need to establish a clear budget. It’s what serves as a foundation to help you plan for the future by keeping both your spending and savings in check. Setting a budget means setting financial goals, too, and it's one of the first steps you’ll take towards making decisions about what you want to do with your money.

Having a budget is vital, which you probably already know. But another essential (and often overlooked) budgeting tool you’ll want to start using is an income and expense worksheet. While a budget can help you plan for the future, this worksheet can show you what you're really doing with your money right now — not later on.

It's important to have both your budget and an income and expense tracker for keeping a record of your money moves. When you do, you can improve your money management head-on and make the most informed financial decisions for your future. With this in mind, let’s dive into what an income and expense worksheet is and how it can help you reach your financial goals.