How do you feel about your finances? Do you have a budget? Do you know what you spend your money on, or does it just sort of seem to come and go and every now and then you check your account to make sure you aren’t overdrawing? Maybe you keep tabs on how MUCH is IN the account, but not on where it’s going. Does budgeting overwhelm you? Then you have GOT to read this post.
It’s about the single BEST thing you can do to get a grip on your finances.
Feel like your drowning, confused, or just don’t know where to start? THIS is where. When your finances are overwhelming you, this is your first step. And you can start RIGHT NOW.
The secret is monthly tracking.
That means keeping track of each transaction and each time you spend money and then categorizing it so that you know how much money you are spending and what you are spending it on. And no, it’s not hard to do. You just sit down preferably once a week, check out your bank account online, and organize your transactions. If you pay with cash or a mix, you can just keep a little note book or save your receipts.
But for we get into the how, let me tell you WHY this is SO important:
- Tracking your expenses keeps you in touch with your finances. You don’t have to worry so much about if you have enough money in your account if you are checking in with it frequently enough.
- When you start to track your expenses it makes it super easy to recognize your most costly spending habits. When you have to stare down a page at the end of the month that shows that you spent over $200 eating out, it’s a lot easier to know where to make your most effective budget cuts.
- If you are watching where your money goes, you naturally start making better money choices. You start to think, “If I buy this, I’m going to have to face it again later… do I need this?”
- It helps you protect your self from theft. If you are familiar with every charge to your bank account, then if someone hacks you or steals your card, it’s going to be a lot easier to recognize every charge they make, as well as notice the faulty charges sooner!