Part 2/7:
By examining their expenditure using a meticulously crafted spreadsheet, the author emphasizes the importance of tracking financial inflows and outflows. This fundamental practice lays the groundwork for a robust budgeting method that supports consistent investment.
The Expense Tracking Methodology
Spreadsheet Structure
The cornerstone of the budgeting method is a comprehensive spreadsheet used for tracking expenses. Since September 2021, the author has maintained regular updates to this spreadsheet, which categorizes spending into several critical areas including:
Rent
Subscriptions (e.g., Netflix, Spotify)
Investment fees
Fuel
Food
Eating out
Clothing
Miscellaneous expenditures