Level Money Blog TIP: What Type of Spending Should you be Tracking?

Whether we admit it or not, most of us realize that we could probably afford to save more money than we do. But in order to spend less, we need to keep track of our expenses and identify where we can make cuts. If you're a Level Money℠ app user, you may already be in the know about how to use our custom spending trackers to gain insight into specific categories of expenses (if you're new to Level, click this link for tips on how to get started). Either way, here are some key areas of spending that are worth keeping an eye on:Housing: Many financial experts recommend spending no more than one-third of your pre-tax income on housing. You need to factor in more than just your monthly payment when calculating your cost of living. Hidden costs like renter's insurance can increase your housing expenses (especially when you're moving into your first apartment) which means you'll have less in your budget for other essentials like food and healthcare. Irregular expenses: Expenses like your rent, cell phone bill, and student loan payment may be set every month, but costs for things like car insurance and doctor visits can vary. The app can help you manage both predictable and variable bills with flexible money management tools, so it's important to label your expenses properly. Just tap the relevant transaction in your app's Financial Feed and change the "Type" to "Bill." Remember, the "Bill" label should only be used for essential expenses like housing, healthcare, groceries, and commuting costs. When it comes to irregular non-essential expenses that you've saved up for (things like a big summer vacation or gifts during the holidays), you may want to label these as "Don't Count" so the app won't dock your Monthly Spendable.Hobbies: Whether you enjoy spending time traveling, working out, or eating and drinking with friends, hobbies can take up a healthy chunk of your budget. Spending money on experiences instead of material things has been shown to bring people greater joy, but that doesn't mean you don't need to keep on eye on these costs. Follow these steps to create a custom spending tracker for your hobby-related expenses.And while you're tracking these costs, make sure you're not leaving out these other forgettable expenses from your budget.Level Money℠ powered by Capital One®The compensated opinions expressed by the author at or through this blog are the opinions of the individual author, and may not reflect the opinions of any other person, legal entity or corporation. The author's opinions are not to be interpreted or held accountable as financial advice or recommendations.