Tracking your spending

A new tool to track spending may be useful for those nearing retirement.

The MoneySmart TrackMySpend smartphone app to help Australians track their spending and better manage their finances was released last week.

This is one of a suite of tools the government’s MoneySmart initiative has developed to help all Australians take control of where their money goes each week, so they can reduce money stress and stay on top of their bills.

Australian Securities and Investments Commission research shows many people fall into the trap of living from one payday to the next and inadvertently spend thousands of dollars more than they expect each year because they are not keeping track of their money.

The Australian Bureau of Statistics Household Expenditure Data shows average Australian households spend about $1,236 per week, yet only 54% of 1,400 people who completed the Money Health Check tool on the MoneySmart website said they knew exactly what their money was spent on.

Parliamentary Secretary to the Treasurer, the Hon Bernie Ripoll MP, welcomed the release of the MoneySmart TrackMySpend and said the mobile app was a great way to keep track of your spending while you are on the move.

“This app helps you set realistic spending limits and stick to them. You can enter your expenses by category so your money goes towards the things that are important, and you can include whether the expense is a want or a need.

“The app can be tailored to your individual circumstances. You can stay within the budget you set for yourself, so you can save for a holiday or pay off a debt,” Mr Ripoll said.

In addition, a new Managing Your Money booklet provides a step-by-step guide to budgeting, with a lift-out budget template for those who prefer pen and paper. This builds on the very popular Budget Planner on MoneySmart’s website, which is used by 28,000 people every month.

Mr Ripoll said tools like these were particularly important given many Australians were concerned about the cost of everyday expenses like electricity, food and housing.

“These MoneySmart tools complement a range of measures the Federal Labor Government has put in place to help people better manage their finances.

“MoneySmart tools are simple and convenient to use and I encourage people to download the app and start taking charge of their spending,” he said.

The MoneySmart app, Managing Your Money booklet, Budget Planner and other publications can be ordered free on the MoneySmart website. The MoneySmart TrackMySpend is also available free from the App Store.