- Guest Contributor
- July 6, 2021
As a gig worker, you know a thing or two about juggling bills while waiting for clients to pay their invoices. When you don’t always have a reliable timeframe for when to expect payment, having a good system to track expenses helps you plan a budget the best you can. That in turn can help you feel more confident about your finances. From our experience, it all starts with choosing the right system or program for expense tracking.
Which Expense Tracker App is Right for You?
The Balance website offers a handy guide to help you choose a smartphone or web-based application to help with expense tracking. Are you a Millennial? The recommendation is Wally. Do you own a small business in addition to gig work? Then you might want to check out QuickBooks. After comparing features on several expense tracking apps, choose the one right for you and start tracking away.
Understand Tax-Deductible Expenses
Some expenses you incur actually pay you back in the form of a tax deduction, but you need to know what they are first. Here are some of the most common expenses you may be able to write off on your tax return.
- Business expenses
- Charitable giving
- Childcare expenses
- Medical expenses
- Mortgage interest
- Property taxes
We recommend visiting Turbo Tax to learn more about what qualifies as a tax deduction and how to claim it.
Save Receipts or Capture Them Digitally
You can’t benefit from expense tracking if you don’t know how much you spent or where you spent it. Saving your receipts solves this problem. If you would rather not fill a drawer with every receipt you accumulate in a year, look into desktop or smartphone applications that allow you to upload a picture of each receipt instead. QuickBooks is just one example of a vendor offering this feature.
Stay Diligent with Your Tracking
Expense tracking might feel like a chore when you first start doing it. If you keep at it, however, it will soon become a daily habit. Take care not to let yourself get too many days behind because this can tempt you to give up on the whole process. Keep in mind that it can take a while to notice patterns and see a difference in your spending habits. This is normal. While expense tracking is valuable, you shouldn’t expect to see results with it overnight.
Consider Working with a Professional Such as a Financial Planner
A common myth about financial planners is that they only work with the wealthy. The reality is that financial planners can work with anyone to lower their taxes, create savings strategies, and teach them budgeting techniques such as expense tracking. If the cost of hiring a financial planner is too high, consider an accountant or a budgeting coach. The latter arrangement is more informal and involves working one-on-one with a coach to establish and maintain a budget.
Rather than view expense tracking as one more thing you have to do, you may feel more motivated if you consider it a tool that can help you reach your financial goals.
About the Author: Lisa Kroulik has worked as a freelance content marketing writer for 10 years. She loves the work and the lifestyle it affords. Learn more about Lisa’s work and availability through Writer Access.
