December 18, 2014 Admin | December 18, 2014 Tracking your spending is critically important when managing your financial life. Why? How?
3 thoughts on “December 18, 2014”
Tracking your money is important because it lets you know what your spending your money on. It allows you to keep track of how much money you are spending on different things. Once you figure out what you are spending your money on you can then find out what your spending money on that you don’t need to be. Such as if you were wasting a lot of money eating at restaurant, you could identify that and make changes so you don’t waist that much money. Tracking your spending will also make you spend less money because it will become a lot easer to see if you are spending money on things you don’t need or things you didn’t realize you wasting money on.
If you dont track your spending you will not know where your money is going. Many people make little purchases that they dont think about but add up to a good amount of money in their life like a daily cup of coffee. You want to be able to see the areas you are over spending in and try and cut back on those, identify your problem areas. You can track your spending one easy way by paying for everything on a credit card or debt card and looking at the bill at the end of the month and breaking down the purchases in the right categories. Just be careful not to over use the credit card and make sure to pay it off in full at the end of the cycle.
Well said, gentlemen. Let’s review.
1. Tracking your spending identifies where it is going
2. Keep it simple and sustainable so it will last
3. Using a credit card or debit card can work very well
4. Put everything on it and then tally up the totals at months end
5. Categorize and place the numbers into a spreadsheet
6. Do it every month as you evaluate the situation
7. Change your habits and behaviors to change your spending
8. Use the spreadsheet on this site or
9. Use mint.com or powerwallet.com
10. Share this wisdom with others!