Earning a decent amount of money is, no doubt, essential for becoming financially successful. However, things will go south if you don’t know how to properly track your earnings over time. It is a lot simpler than most people think of it. There are several ways you can track your income which will help in managing expenses and savings. In this article, I am going to discuss some simple ways you can track your earnings easily. Let’s start.

Why it is Important to Track Earning?
Tracking earnings over time is one of the most important financial factors that helps in becoming financially successful easily. It is a process where you note down all the income and the sources it is coming from. It also includes tracking how much income is coming over time.

Besides calculating income, it also involves tracking where the money is spent. Tracking these factors allows you to have a clear picture of your financial situation and make lifestyle decisions accordingly. It also helps with saving in a more efficient way and the saved money can be used for investing and building a decent net worth over time.

Simple Ways to Track Your Earnings:

The details of these ways are given below:

Use a physical journal:
The simplest way to track your earnings is by noting them down in a physical journal. It is a great choice for people who have few income sources. That is because tracking down a few sources manually in a journal is much easier.

It is an easier and more personalized way of tracking earnings since you can make tables and sheets in any way you like. Also, it is a physical method so you don’t need to be dependent on any type of technology to utilize it.

Try to select the right type of journal that has good paper quality and a durable cover. Also, you can draw tables and sections on pages for better income categorization. Besides that, dedicating a section in the journal for inputting financial goals will also be a good idea.

Use spreadsheets:
For people who have multiple complex income streams can use spreadsheet software to track their income. They offer multiple features that make tracking a lot easier. A good thing about this method is that there are different types of spreadsheet software available on the Internet. They work both offline and online so you don’t have to worry about Internet connectivity.

Some spreadsheets have built-in templates for noting down income sources in a better way. It is a great feature for those who don’t know how to create tracking tables themselves. Software like Google Sheets works online meaning they auto-save your files in the cloud storage. So, you can access them whenever you want to without losing the data.

Using accounting software:
In case you have very complex income sources where you deal with things like investments, endorsements, organizational charities, etc., using accounting software will be the best way for you. These software are specifically made to calculate and manage complex net worths. They are also a great option for people looking for automation in their income management. Accounting software provides features that help deal with things like invoices, profit-and-loss calculations, tax reports, and more.

The application of accounting software can be seen in managing the finances of big companies and individual celebrities. For example, let’s say we’re dealing with Brad Pitt net worth and using software to manage it. The software will track his income from the film industry, brand endorsements, investments, etc. After the income calculation, the software also tracks places where the celebrity is spending his money. In short, the software will give a complete picture of the financial situation of whoever is using it.

Use budgeting apps:
Tracking earnings by using budgeting apps is also a great idea if you earn money from different sources. These apps are designed to automatically calculate money you earn so that you don’t have to worry about any calculations. There are some apps that automatically connect and sync data with your bank account.

In this way, the tracking becomes more convenient and accurate. Besides managing incomes, these apps are also designed to keep expenses and savings in check. After checking, they keep you notified as well with their notifications system. With the help of budgeting apps, you get to set financial goals as well. Most of them keep on providing detailed reports of incomes and expenses to help you manage finances in a more efficient way.

Conclusion:
Tracking earnings is an important factor when it comes to streamlining financials. It involves tracking overall income and from what sources it is coming from. Fortunately, tracking it is a lot easier in some simple ways.

These ways include using manual tracking on a physical journal and using technology as well. Both of these methods are designed for different needs. So, pick any method that is convenient for you and start streamlining your earnings.