There are many challenges to life as a college student and one of the biggest is having to make do with limited funds. If you want to make sure you can cover all of your expenses with the funds you have available, it's crucial that you keep track of where your money is going. Especially if you are hoping to avoid racking up student debt, or you are trying to pay back your loan before finishing college.

The good news is that keeping track of your expenses these days is not too difficult. Here's how you can do it.

Step #1 - Pick a tool

One of the easiest ways to track your monthly expenses is to use a financial app on your phone. However, that is not the only option you have available. Spreadsheets are also a popular tool for financial tracking and planning. You can also keep track of how much you are spending using a notebook or a pocket notepad.

Choose whichever method makes it easier for you to follow the next two steps in this guide regularly. You will be expected to make these part of your routine, after all, so comfort and convenience are important factors to consider.

Step #2 - Track your fixed expenses

Start by taking stock of all the money you have to spend every month. This includes regular bills, regular debt payments, living expenses, transportation costs, etc. This will give you a clear sense of what your overheads are.

Step #3 - Track your daily expenses

Take notes on every single dollar you spend so you can add it to your expenses list later. This is a good way to both see how much value you're getting out of the money you're spending, and identify areas where you might be able to cut back on spending. Maybe you can forgo a few luxuries here and there so you can use that extra cash to pay back your debt or make an investment.