9 REASONS WHY YOU SHOULD BE TRACKING YOUR EXPENSES
Introduction There’s no reason to be ashamed of it: most people in the world don’t track expenses. For many people, being in difficulties just comes down to bad financial planning. If you’re broke by the end of the month, not reaching your finance goals or just unsure of where all your money went, we have two words for you: track expenses. We’ve got 9 important reasons that you should start tracking your expenses today.
1. Know your money The first advantage of deciding to track expenses is knowing exactly where all your hard-earned cash is ending up: • find out how much you spend on groceries, etc. • save for bigger purchases by cutting back now • start taking control of your expenses When you know where your money goes, it’s the first step to really getting a hold of your expenses.
2. Prioritize expenses Discretionary expenditures are “wants” and not “needs,” and when you track expenses you can prioritize: • make better decisions on important purchases • tone down expensive discretionary purchases • determine whether something is a want or need When you track expenses, you begin to see where your money goes (point no. 1) and then you’ll see exactly what is more important: to save money or spend it unwisely.
3. Be more disciplined Knowing here your expenses are going will make you naturally more disciplined and organized in your expenditures: • although hard at the beginning, soon it will be routine • your discipline will pay off with fewer bad purchases • you’ll become more organized in your expenses However, don’t organize by writing expenses down on random pieces of paper. Use InvoiceBerry’s online expense tracking feature to really get organized.
4. Plan your future An eventual consequence of the decision to track expenses is that you’ll eventually focus on your financial future: • you’re reading and learning about making more money • cutting back and saving means helps your financial goals • reinvest your saved money into educating yourself Because you’re already on the road to financial success, you will need to start growing your money, and when you think about it, you’ll be able to plan better.
5. Prevent crises When you’ve been tracking expenses for a while, you’ll begin to find out what your problem spending areas are: • are you spending too much on food or eating out? • are you a shopoholic, and you need to find ways to stop? • manage lifestyle purchases before they become crises With consistently tracked expenses, you’ll be able to see your own problem spending areas, and you’ll be able to work on stopping them in time.
6. Unite the family Money is one of the most difficult conversations to have in a relationship or as a family, but it’s still very important: • you will work on a shared goal to reduce expenses • you will be able to help each other out • keep each other in check and enjoy shared successes Although it’s tough in the first few weeks, after real progress is made, you’ll see how uniting of an experience tracking your expenses is.
7. Measure your progress Goals are crucial for progress, and when you track expenses it’s much easier for you to set accurate goals: • With a specific sum goal in mind, you can start to plan • after a certain time, decide how well you’ve done • adjust and set your next goals, and measure again You’ll know exactly how close or far away from your goal you really are, and you can adapt and ensure you reach your goal.
8. Stop stressing Because you don’t track your expenses, you’re not sure how much you’ll have in your account by the end of the month, and now you’re stressing. Avoid that by tracking expenses: • be firm in the knowledge that you can pay your bills • have a buffer of extra salary as savings for tough times • reduced stress means you’ll be able to enjoy life more By knowing exaclty how much you have in your bank, because you’ve tracked your expenses, you’ll lower your financial stress.
9. Stop fraud charges Although you may not be aware, unauthorized charges happen a lot. But if you track expenses, you’ll be more careful: • you’ll know where all of your expenses came from • you can find and report fraudulent charges quickly • protect yourself from further bad charges Credit card fraud happens a lot. But with your eagle eyes, you’ll catch it quickly and get your money back.
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9 Reasons Why You Should Track Expenses
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