Spending isnt just a need - it is GDP duty!!
With a dash of humor and a sprinkle of savvy, you can master the art of managing, tracking, and even benefiting from your expenses.
We will get to Savings next but let’s start with Expenses…those sneaky termites that creep into our lives, raid our wallets and make our hard earned money disappear! One moment you’re feeling rich, and the next, you’re wondering if your credit card is actually just a prank gift from the universe.
But fear not! With a dash of humor and a sprinkle of savvy (ahem), you can master the art of managing, tracking, and even benefiting from your expenses. So, grab your dancing shoes, and let's waltz through the world of personal finance together.
Expenses Are Just Cake Slices 🍰
Our income is like that heavenly chocolate cake my wife bakes (truly divine). Expenses? They’re the slices we hand out in exchange for things we’ve convinced ourselves we need. Some slices are necessary—like rent, groceries, and that 4 PM caffeine fix. Others? Let’s just say your “emotional support shopping” isn’t exactly tax-deductible.
Why do you spend so much, I asked a friend and he replied with a straight face “I spend to help the economy. If I stop, our GDP will fall, and we don’t want that, do we?” Hmm. I think he just wanted an excuse to buy yet another limited-edition sneaker.
Managing Expenses: Taming the Beast
Oh maan…really!! Id rather pull teeth with a plier or even better watch paint try!! I know ..I know…who really wants to manage expenses. The fun is in spending …isnt it. And yet, it is the cornerstone of financial balance.
So how can we keep our spending in check without sacrificing the fun:
Set Financial Goals 🎯 - Whether it's saving for a vacation, building an emergency fund, or paying off debt, having clear goals can motivate you to manage your expenses better. Plus, crossing them off your list feels oh-so-satisfying—like finally deleting that one WhatsApp group you never wanted to be in.
Create a Budget 🗺️- A budget is your financial Google Maps. It tells you where to spend, where to save, and where to stop throwing money into the abyss. (Looking at you, 43rd pair of shoes.)
I’ll get into the details of goals and budgeting in another post—stay tuned!
Needs over Wants - This is where most of us stumble. Wants are like that whatsapp forward that is irritating you and you want to respond in strong words to the sender. Many a times, when you sleep on it, you find the urge to respond hs faded.
Do I need this or do I just want it?
Earning from Expenses: The Silver Lining
Believe it or not, some expenses can actually put money back into your pocket. Here's how to make your spending work for you:
Cashback and Rewards Programs: I travel regularly and have strategically chosen credit cards that provide me with optimum returns for my spends. More purchasing power, better credit history, and rewards that actually matter. Needless to say, I am disciplined in repayment and borrow responsibly.
There is lots happening in the Indian Credit card scene with new cards launched regularly…do your research and enjoy earning while spending!! This requires thorough research, broad awareness of your spending patterns and diligence to make a credit card work for you!!
I enjoyed my 20th anniversary in Mauritius for a week with all the travel expenses (hotel & flight) paid for with points!
Tax Deductions: Certain expenses, like medical bills or education costs, may be tax-deductible. Keep meticulous records and consult with a tax professional to maximize your deductions.
Invest in Energy Efficiency: A bunch of my neighbors (including me) installed solar panels. Now, lower bills and a cleaner conscience. Double win!
Tracking Expenses: The Detective Work
Do you know how much you spent yesterday or last week or for that matter the last month? How much do you spend on food every year for the past 3 years? If you are have no idea or need a week to pull it together, you are not alone!
A 2020 Intuit Survey of at least 1500 random people found that more than 60% did not know how much they spent the previous month.
Why bother tracking?
Because it helps you:
Figure out where your money is running off to (Spoiler alert: it’s probably funding your caffeine addiction, overpriced avocado toast, and those “totally necessary” Amazon purchases at 2 AM).
Tackle debt like a pro (Finally cancel that “free trial” you forgot about—three years ago. RIP, random meditation app).
Play detective with your credit card statements (Wait, who bought 10 Venti Iced Caramel Macchiato? Oh… it was you, on that road trip).
Dodge financial stress (Because “accidentally broke” is not a personality trait. Say hello to your future vacation fund—beach cocktails > budgeting meltdowns)
And yet, most of us don’t do it. Why?
“It’s boring.”
“I don’t have time!”
“Ignorance is bliss.” (Spoiler: It’s not.)
But tracking can actually be fun if you do it right. Trust me. I’ve been there—starting with an Excel sheet and eventually upgrading to an automated app that my wife and I check together monthly. Yes, we’re that couple.
How to make expense tracking easier (and fun):
Use an app. 📱 Google it. Pick something easy. Personally, I use Fold Money—no sponsorship here; I just love its simplicity.
Stick to Excel 📊 If you’re old-school or just love spreadsheets, Excel gets the job done. Add some color-coding, and you’ve got a masterpiece.
Automate where you can 🤖 Apps do this by default, but you can make Excel smarter too. (Google “how to automate Excel categories” for hacks!)
Make it visual. 🎨 Charts = Happiness. Who doesn’t love seeing their “Entertainment” budget as a giant red slice on a pie chart?
Snap receipts.📸 Take photos of your receipts and let apps like Evernote do the heavy lifting.
My story:
When I graduated with my MBA in 2001, life was great. Companies were wooing grads like me with job offers, fancy titles, and big dreams.
And then September 11 happened.
Suddenly, my fancy job offer was indefinitely postponed. No income. No certainty. Just me and a very tight budget..
So, I did the one thing I could control: I tracked every single meaningful expense.
I used my credit card for everything and logged major spends meticulously. It wasn’t fun, but it worked. I trimmed wasteful expenses and prioritized essentials.
When I finally got a job months later, the habit stuck. And here I am, still tracking. Except now, I have apps to do most of the work for me.
Final Thoughts:
Start small, be flexible, and stay consistent.
✅ Start small, be flexible, and stay consistent.
✅ Have a goal in mind with your spending.
✅ Remember: Spending can also earn!
✅ Tracking can be fun with technology.
Next time someone asks, “How much did you spend last month?” pause, smirk and say
“Which category would you like me to break it down into?”
Now, go forth and conquer your expenses! And if you have any tips or tools that work for you, share them in the comments!
Next week we move to the 3rd part of Foundations of Personal Finance - Saving!!
Till then Stay Curious and find out what consistent tracking of expenses work for you!
Great post Ramkey. Any recommendations for Travel Credit Cards?