ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Tracking your expenses helps you become more aware of what you are spending and where you are spending it. Tracking your spending is the only way to find out how much you’re spending on non-essentials. It can help you identify the areas where you need to change.

Detailed explanation-2: -Tracking your spending on a regular basis can give you an accurate picture of where your money is going-and where you’d like it to go instead. Then, by using a budget, you can accurately account for all the bills you need to pay going forward.

Detailed explanation-3: -When you track your spending, you know where your money goes and you can ensure that your money is used wisely. Tracking your expenditures also allows you to understand why you’re in debt and how you got there. This will then help you design a befitting strategy of getting out of debt.

Detailed explanation-4: -Expense tracking is part of creating a budget and is simply a way for teams to monitor how much they are spending. Budget tracking helps teams monitor how much budget has been spent.