3 ways expense tracking can improve your financial health

Despite earning a decent salary, Jimmy always seemed to run out of money before the month was over. He struggled with saving and felt constantly stressed about his finances. Although he knew that tracking his expenses could provide answers, he never got around to doing it.

One weekend, with a rare moment of free time, Jimmy decided to tackle his financial concerns head-on. He had all his account statements open on different tabs, ready to track his spending. What he found was eye-opening. Jimmy was spending a significant amount on daily meals from Iya Moria and an even larger sum at high-end restaurants around Lagos. Those seemingly small expenses were adding up to a surprising amount each month.

Seeing his spending laid out was a wake-up call. Realizing how much he was wasting, Jimmy decided to make a change. Inspired by his mother’s favorite saying, “There’s rice at home, Jimboy,” he started cooking more at home instead of dining out. The results were immediate and impressive.

Within just a few months, Jimmy’s financial situation improved dramatically. He no longer lived paycheck to paycheck and felt a new sense of financial control and security.

Keep an eye on all your money in one spot with Kolo

Like Jimmy, most people know they should monitor their expenses, but few actually do. Whether it’s seen as another burden or they prefer to remain unaware of their spending habits, it’s easy to dismiss the importance of tracking expenses.

In reality, monitoring your expenses can significantly improve your financial health. While you might believe you understand your spending patterns, you’ll never identify your largest costs without detailed records. 

After just a month of tracking, you might be shocked at how much you spend in certain areas of your life. That’s where Kolo comes in.

At a minimum, Kolo Finance — a personal finance management tool — allows you to combine all your Nigerian bank accounts. With your permission, it can get transaction data from your emails and SMS and put it all together in an understandable manner. Therefore, you can view your financial data across banks on one screen and track your expense 

Here’s why you should be tracking your expenses:

Featured read: We built Kolo to help you tame your bank accounts

Benefits of tracking your expenses with Lendsqr’s Kolo

Keeping an eye on your spending habits has many perks that can help you get your finances in order. Here are some of the benefits:

Identifying unnecessary expenses

Monitoring your expenses lets you spot where you’re overspending so you can make adjustments. For instance, if you realize a lot of your money goes towards subscription services you rarely use, you could cancel some of them and save money. 

Similarly, if you find you’re splurging on pricey street food every day, you could switch to cooking your own at home to cut costs. 

With the Kolo app, you can view all your expenses (accounts) in one place, which helps you identify any and every unnecessary expense.

Enhances financial planning 

Imagine you’re trying to get your finances on track. One of the best ways to do this is by keeping a close eye on where your money goes. Think of it like keeping a food diary when you’re on a diet — you see exactly what you’re consuming, and it helps you make better choices. 

It’s easier to create a realistic budget when you know exactly how much you’re spending and on what. For example, tracking your expenses helps you see that those small daily suya purchases add up. 

This awareness of personal finance management allows you to cut back on unnecessary spending, pay off debts faster, and set aside money for future needs.

Fraud detection and prevention

Imagine getting a bill for something you didn’t buy; frustrating, right? By regularly checking your spending, you can quickly catch and report any fraudulent activities on your accounts. 

Reviewing your bank statements and monthly bills helps you spot any suspicious activity and take action before it becomes a bigger issue. However, you can only detect suspicious activities when you have a bird’ s-eye view of how your money moves, and what better way than to do it with Kolo? 

Featured read: How Kolo simplifies expense tracking across multiple bank accounts

Take charge of your finances

What started as a daunting task for Jimmy turned into a revelation, shedding light on where his money was going and allowing him to make impactful changes. 

Like Jimmy, many people know they should track their spending but never get around to it. Kolo makes this process easier than what Jimmy had to go through by consolidating their bank accounts and transaction data into a single, user-friendly interface. With Kolo, you can identify and eliminate unnecessary expenses, plan your finances better, and even spot fraudulent activities before they become bigger issues.

Don’t let your finances control you. Take charge with Kolo and see how tracking your expenses can unlock a path to better financial health. Visit Kolo to get started.