Episode Summary
On this episode Mike and Maggie address their #1 requested topic so far: expense tracking! We talk about how what gets measured gets better. And then we break down the specifics of how we each approach expense tracking. Money doesn’t need to be a taboo topic, so we also encourage you to share your expense tracking through monthly reviews with a friend, partner, or spouse. After listening to our thoughts, click the link below to get your very own customer friends on FIRE expense tracker!
Episode Notes
This is our most asked topic, and we share a listener question from Leah that many people can relate to. Mike shares that he’s been tracking his expenses in a detailed way for decades, and Maggie talks about how much detailed expense tracking made her more aware of her spending and improved her spending habits. What gets measured gets better! Also, having peer accountability with Mike was incredibly helpful.
Mike and Maggie each share the specifics of how they track their own expenses. They both use a basic excel template to manually track all of their expenses, and then summarize them into categories. There is value in tracking things down to the penny and being able to visualize what you’re spending. Mike saves his physical receipts and/or notes on expenses, and logs them in at the end of the month. Maggie uses Mint to capture all of her expenses from various accounts, vs. saving real receipts, and then manually logs them into an excel sheet 3-4 times a month. She really enjoys seeing the progress throughout the month. But make no mistake, it’s a tedious and boring process. But that’s the purpose: to change the way you view your expenses. Click the link below to get your very own custom friends on FIRE expense tracker!
Getting in a routine of doing this makes it easier from month to month, and eventually you’ll get excited to review your progress at the end of each month. Accountability is one of the most important pieces of the process. You’ll get the biggest impact by reviewing your expense tracking with someone else and getting their feedback. Review it with somebody or even send it to us!
Mike shares advice that “whoever controls the number controls the narrative,” and how detailed expense tracking can also help with getting a spouse or others on board. When they see the numbers of where things are going it can really help.
We close out this episode with a riveting discussion on whether beanie babies still have any value!?
Our top 3 takeaways for this episode:
- Track every expense, by category and by month.
- Look for savings opportunities in every category you are tracking. Choose a few each month to focus on, or if you’re an overachiever focus on them all at once!
- Review it with a friend or a partner. Hold each other accountable, and be vulnerable and transparent during the reviews.
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Show References