Tracking Your Spending Is ABSOLUTELY CRITICAL! Here’s why and how to do it EASILY.


Cut your spending by $6,000 without giving up the fun and without a complicated budget.

Break the paycheck-to-paycheck cycle, find the money to pay back your loans and finally build your savings.

by Rob Bertman, CFA, CFP® in Money Strategy, Spending
June 21, 2016

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Hi there! I’m Rob Bertman, Founder of Money With Impact, and this is 5-Minute Financial Fitness.

We’re going to get your money in shape by giving you simple and easy to learn tools and tactics in 5 minutes or less.

These tools and tactics are going to help you get the most out of your money to pay back your debt faster, spend more wisely, learn about investing, help you figure out what you want to do with your life, and how you can use your money to accomplish the things in life you want today and tomorrow. That’s what 5-minute financial fitness is all about.

Today we’re going to talk about why it’s absolutely critical to track your spending and how to do it very easily.

If you’ve ever used Uber or Lyft, the very first question it asks you is where you want to be picked up (your starting point).  Until it knows where you’re starting, it won’t be able to route you to your destination. This is exactly what tracking your spending is all about.

We first need to know what have we been doing with our money in order to figure out how to use it better, how to use it more wisely. What extra money do we have to pay down our debt faster? How can we cut our spending without missing it?  We need to know what are we doing with our money today first. Just like being asked what is your pickup location. Where are we right now?

If you’ve ever played a musical instrument, presented in front of people, or played a sport, sometimes your perception of your performance may be different than the reality. The best way to see what really happened is to take a video or record yourself, because when you’re in the moment, you may think that you’re doing all the right things. You may think that you played the right note or had the right feel of the music. But until you actually listen to it or watch it, seeing it from an objective point of view, do you know if you were actually doing what you thought.

For example with speaking or presenting, you may think you’re wildly enthusiastic and that you have all this energy but then when you play back the recording, you say, “Hmmm…I actually sound low energy or monotone. Here’s what I can do to improve.”

That’s what tracking our spending does.  It gives us the reality of where our money is going. It’s not clouded by any judgement. It is the reality. That’s why it’s so critical to track our spending, because we need to know the facts about what we are doing with our money. Then we can know how to plot a better course going forward and how we can use our money better.

Now how do we track our spending easily? I used to do it in the very hard way where I would manually enter the transactions in an excel.  Then many apps came along that pull in the transactions automatically.  I decided to use

What it does in a nutshell is pull in all your transactions from your credit card, debit card, bank account, and even PayPal. It pulls in all the information so that you don’t have to do it manually.  Then you can look at everything in one place and see how much money are you spending on a monthly basis and where that money is going (aka your “current location”). Then you can start to evaluate it and see how to get to your destination.

There are other free tracking and budgeting apps out there besides Mint. I personally use Mint but go ahead and do some research on your own to see what works best for you.  If you Google “free apps to track your spending”, you’ll see what comes up.  Just make sure you’re using one that’s really really secure and encrypted like Mint. I know Mint claims to have great security so that’s another reason why to use it.

So there’s no excuse.  Start tracking your spending.

Until you know where your money is going right now, it’s hard to plot a course to your destination. Maybe you’ll find that you are spending way too much in an area that you can slash your spending without missing it?  Maybe you find a way to pay down your debt faster or save up for that trip that you want to take.

Knowing where your money is going today will help you clearly see what changes to make to get more out of your money and how to get there taking the fastest route.

Thanks for taking this 5 minutes to learn why tracking your spending is so important and how to do it easily.

We’ll talk to you soon!

All the best,

Rob Bertman, CFA, CFP®
Founder & CEO
Money With Impact

Click here to watch the in-depth webinar replay.

5MFF-Track Spending thumb-YT


Cut your spending by $6,000 without giving up the fun and without a complicated budget.

Break the paycheck-to-paycheck cycle, find the money to pay back your loans and finally build your savings.