Sometimes spending on a credit can feel like you’re not spending anything at all, and that can cause some major trouble in your finances. Credit cards are more prevalent now than ever before and there’s no getting away from them.
While they make for a more accessible way of spending and are great for building a credit history, it is also quite easy to fall into overspending and overusing credit. This is why credit card spending tracking is one of the best ways to stay on top of your spending.
By gaining a clearer picture of how you spend using your credit cards, you have the opportunity to identify areas where you can make better spending decisions. Check out these tips for credit card expense tracking.
Get Transaction Alerts
Most, if not all, credit card companies today allow cardholders to sign up for transaction alerts. These types of notifications are either sent as an email or text message via push notifications.
These transaction alerts help cardholders stay on top of their finances. They also help prevent fraudulent transactions from taking place or from remaining undetected for a long time.
By signing up for credit card alerts, individuals will not only gain access to their transactions and expenses, but they can also keep track of their monthly credit card balance before it reaches a critical level.
Constantly Check Your Statement of Account
Another way you can effectively manage your spending habits is by checking your account statements often. When your credit card bill or statement of account arrives at the end of each month, you should look at all of the details right away.
By thoroughly checking each purchase made using the credit card, you can discover fraudulent purchases. Doing this also gives you an overview of what you are spending your money on.
Enrolling in online banking makes viewing statements of accounts hassle-free. This lets you log in and view purchases without waiting for the monthly statement to arrive. Most of the time, banks also have mobile banking apps that offer statement viewing.
Break Down Credit Card Spending
More and more financial firms and banking institutions are categorizing credit card spending in their statements. This makes it easier for individuals to see where their money is going.
If your credit card company doesn’t do this, you can manually categorize your expenses into groceries, household maintenance, subscriptions, and more. This lets you see exactly what area of your spending is highest and where you can cut back.
Use an Expense-Tracking Application
Categorizing and itemizing expenses manually can be quite tedious to do, especially for people who lead busy lives. Thankfully, there are dedicated apps and programs on the market that make credit card expense tracking more convenient than ever.
These budgeting or expense tracking applications allow individuals to log each and every one of their purchases and plan and manage their budget. Others even allow the linking of credit cards so that these smart applications can track purchases in real-time.
Popular Tracking Apps
Some of the more popular budgeting apps available on the Google Play Store include Mint, You Need a Budget, and Wally. While most are free, upgrading to a premium subscription opens up features that provide a more in-depth approach to managing expenses.
Many programs also offer credit monitoring and syncing between devices and accounts, making for a more seamless transition when using these tools.
The Bottom Line
Credit card expense tracking truly pays off in the end. Besides moving you to stay within your budget, credit expense tracking also helps you think before you spend.