Have you really given thought to why you have the same story about your money at every month’s end? Maybe it’s because once it gets into your account, you get that “money-in-the-bank” high(yes, it’s a real thing). To truly master your money, you must first understand how your money works for you. Otherwise, you’ll be a statistic, further proving that the rich get richer and the poor, poorer.
These 7 principles might be a good guide to understanding what to fix.
1. Because You Might Be Living Above Your Means
If you don’t know what your monthly expenses look like, you’re at risk of living way above your means. For all you know, you could be spending an exorbitant amount on data when you should be saving for a vacation. That extra money going toward food, could have been going toward your dreams.
2. It Helps You to Overcome Your Weaknesses
Be it clothes, hair, watches or impulse buying, when you know your spending weaknesses, it “gingahs” you even more and doing something about it is becomes a life saver.
3. You Can Finally Take Control
Tracking your expenses is empowering. When you know what you do with your money, you can even move it around to suit changes in your life, and even when changes come suddenly, you’ll still be in control.
4. It Keeps You Conscious of Your Account Balance
Your balance after your income and all expenses should ideally be a positive number, not zero or negative from owing so much. You see how sometimes, you finish spending your salary before you get it? It’s because you were not conscious of these habits.
You can do better.
5. It Forces You to Prioritize.
Mindless spending won’t get you that car you’ve been hoping for. Tracking your expenses is one solid way to go about putting your money only where it needs to go.
6. You Will Be Aware of Questionable Debits and Charges.
Especially those double debit alerts that you may have forgotten about or the. That’s you throwing money out the window!
7. How Else Will You Meet Your Goals?
If you want to buy a piece of land that costs 1.5 million in 2 years’ time, then you must be ready to save 63,500 every month until then right? That’s how people achieve goals! Being aware of the implications on your pocket, will make you rethink random expenses.
The tea is to know where your money goes.
You must be ready to set, execute and achieve your goals in life. If you’re not thinking of ways to repair your account balance yet, then what are you waiting for? Don’t let every good thing keep passing you buy because it is too expensive or too big to dream of.
To find out more about how to track your expenses, sharply visit this link here.