Most people don’t know how much they spend on an annual basis.

And the likelihood is, that there are many expenses that aren’t planned or accounted for.

Understanding your expenditure is crucial. If you don’t know how much you spend then you can’t possibly work out how much you have remaining from your income each month.

This could be extra money for you to do something nice, or even to help towards saving for your future self.

So how do you do it? Here are the steps on how to work out your expenditure:

Here are the steps on how to work out expenditure:

1. Gather your financial statements. This includes your bank statements, credit card statements, payslips, and any other documents that show your income and expenses.
2. Categorise your expenses. This will help you to see where your money is going. Some common categories include housing, transportation, food, clothing, entertainment, and debt payments.
3. Track your spending for a month or two. This will give you a more accurate idea of your actual expenses. You can use a budgeting app or a spreadsheet to track your spending.
4. Set a budget. This is a plan for how you will spend your money each month. Your budget should include all of your essential expenses, as well as some money for savings and discretionary spending.
5. Stick to your budget. This may be difficult at first, but it will get easier over time. There are many resources available to help you stick to your budget, such as budgeting apps and online forums.

Here are some additional tips for working out expenditure:

• Be as accurate as possible when tracking your spending. This will help you to make informed decisions about your budget.
• Be realistic about your budget. Don’t try to cut back too much too soon, or you may be more likely to give up.
• Be flexible. Your budget may need to change over time, as your income and expenses change.
• Don’t be afraid to ask for help. If you are struggling to create or stick to a budget, there are many resources available to help you.

Working out expenditure can be a daunting task, but it is worth it in the long run. By following these steps, you can get a better understanding of your finances and make sure that you are spending your money wisely.

Here are some online tools that can help you to work out expenditure:

• MoneyHelper Budget Planner: https://www.moneyhelper.org.uk/en/everyday-money/budgeting/budget-planner
• Citizens Advice – https://www.citizensadvice.org.uk/debt-and-money/budgeting/budgeting/work-out-your-budget/