Budgeting for expenses in advance ( every month) and capturing all the expenses is a great habit.
If one tries to classify all his expenses under some major heads like rent, emi, food, clothes, medicine, books, entertainment, etc ...he can know where exactly his money is flowing. This can be the first step in putting a 'expenditure curtailing plan' in place. Unless one knows about' where the money goes', it will be impossible to bring down one's expenses.
An VED analysis may help once you start recording your expenses. You can classify your expenses as 'vital' , 'essential' and 'desirable' . You can try curtailing your spends on 'desirable' kind of expenses ..to begin with.
Income minus expense is savings. Savings flows into your investments. So, curtailing your expenditure through 1) Expense Budgeting and 2) Expense Tracking is a first step to increase your funds available for investment.
If you need a sample excel sheet to do expense tracking mail us.