How Tracking Expenses Helped Me Save Over 50 Million Rupiah

Tracking expenses may seem like an unnecessary task, well, boring and repetitive too, but it has made a significant impact on my financial well-being. By documenting on where every bit of my money goes, I was able to save over 50 million Rupiah since I started tracking my expense. This story will delve into why tracking expenses is crucial, sharing my personal experience and insights on how it has helped me make better financial decisions.

Knowing Where Your Money Goes

In 2019, I made the decision to install Monefy, which was the highest rated expense tracking app on the app store at that time. The reason behind this choice was a staggering realization: I was spending nearly IDR 1 million every month solely on coffee.This realization hit me hard, not because of the sheer number but because it highlighted a significant leak in my financial boat, one that was entirely avoidable. By documenting every rupiah spent, I was no longer in the dark about the destinations of my earnings. This level of awareness was both enlightening and alarming; it showed me the importance of logging every expense, no matter how small it seemed at the time.

The act of tracking pushed me to question each expense's necessity, leading me to differentiate between wants and needs with clearer judgment. This audit wasn't about pinching pennies or living frugally without joy. Instead, it was about making conscious/mindful decisions that aligned with my long-term financial health and goals. By understanding the flow of my money, I could pinpoint areas ripe for improvement and identify opportunities to redirect funds toward more meaningful or rewarding expenditures. It was a process that transformed not just my spending habits, but my entire approach to managing finances, providing a solid foundation for making informed decisions that would benefit me well beyond the immediate future.

The Mindfulness in Spending

Adopting the practice of tracking every rupiah I spent brought an unexpected yet profound change in my daily life: a heightened sense of mindfulness every time my wallet opened. This wasn't just about recording numbers in an app; it was about cultivating a moment of pause and reflection before each purchase. The simple question of "Do I really need this?" became a powerful filter, weeding out impulsive buys that would have otherwise gone unnoticed.

This newfound mindfulness didn't happen overnight. Initially, the process felt like an added chore. However, as time passed, it evolved into a habit that brought clarity and intention to my spending. Instead of letting advertisements or fleeting desires dictate my purchases, I found myself making decisions based on my actual needs and long-term financial goals.

Gaining Insights into Your Spending Patterns

The journey of monitoring every rupiah I spent brought to light patterns in my spending that I had previously been oblivious to. It wasn’t merely about noting down numbers; it was an explorative process that allowed me to dive deep into my financial behaviors. Each category of spending, when analyzed over several months, told a story of habits that either served or hindered my financial goals. This analytical approach revealed surprising truths about where my money was actually going, rather than where I assumed it was being channeled. Let's take a look of my coffee habit pattern

A Story about 1 Million Rupiah Coffee

My day always begins with coffee. Whether meeting friends or spending time with family, ordering coffee is a ritual. So, let's break down this routine expense:

Assuming I order a 25,000 IDR coffee on weekdays and a 50,000 IDR coffee on Saturdays, the breakdown is as follows:

• Weekly: (25,000 * 5) + 50,000 = IDR 175,000
• Monthly: 175,000 * 4 = IDR 700,000
• Yearly: 700,000 * 12 = IDR 8,400,000

That amount is surprisingly high for just a sip of coffee. So, what did my expense tracking reveal? The decision was clear: Invest in brewing coffee at home.

Project: Brewing Coffee at Home

To kickoff my brewing coffee at home project, I'll be need two device:

• Flair Espresso Classic: IDR 2,500,000 (Used)
• DF64 (Ferrati Ferro Grinder): IDR 4,500,000 (New)

Additionally, based on my consumption pattern, here's my monthly spending on coffee beans and milk:

• Coffee beans (500g): IDR 79,000
• Fresh Milk (4x1L): IDR 128,000

So, lets do the quick math:

• Project Kickoff Cost (Tools): IDR 7,000,000
• Coffee Beans and Milk (Annually): IDR 2,484,000

Graph

Let's visualize and compare the cost between brewing coffee at home and buying it:

While the return on investment occurs around Month 18, the real impact becomes evident when projected over 5 years:

What do you think? The difference significant. The difference is striking. By investing in something I genuinely need, I can save a significant portion of my expenses. This coffee at home project could potentially save my wallet up to 66% annually.

Base on this granular insight, I was able to make strategic adjustments to my spending. Redirecting funds from non-essential categories to ones that aligned more closely with my values and long-term objectives became a game-changer. This process was not just about cutting costs; it was about optimizing my financial resources to enhance my overall quality of life and ensuring that every expenditure was a step towards achieving my financial dreams. The clarity gained through this in-depth analysis was invaluable, providing a roadmap to navigate my financial journey more effectively. Now, here comes the big question: what app do I use today to track my expenses?

Introducing: Amateur Spender

Amateur Spender is an app I developed to help you, amateurs, track their expenses. From design to deployment, it took me a total of 5 days to create this app, and I offer it to you for free. The app is designed to assist you in monitoring several key aspects of your financial activities, including:

• Expense Tracking
• Income Tracking
• Debt Tracking

Additionally, since I often find myself paying bills for friends upfront, I've included a feature in the expense tracker called Reimbursement. This allows you to mark expenses where you're awaiting payment from someone else. Gone are the days of having to remember who owes you money; now you can simply check your pending income.

I'm certain there's plenty of room for improvement, so please don't hesitate to reach out with your suggestions. You can email me at hi@setasena.com or send me a direct message on Instagram. Your feedback is invaluable, and I'd love to hear about your experience using the app!