It is very important to always track your spending. Have you noticed that you lose money faster than you earn? You keep wondering where the money you earn go to. In fact, it is easy to spend than it is to earn for most people. Therefore, it is important to track your spending constantly.
Below are 7 Good reason you should always track your spending:
1) It saves you from extravagant expenditures
It is very easy to blow up a lot of money. You can go out with your friends on a weekend and just spend lavishly. You may go on-line and begin shopping for clothes, shoes and clothing accessories, which will eat deeply into your account. If you track your spending, you will be able to avoid spending extravagantly.
2) It helps you to prioritize
If you track your spending, you will be able to prioritize easily where you want your money to go. You will be able to create a priority list on necessary and unnecessary expenditures.
3) It helps you achieve your financial goals
You know it is very important to set financial goals, right? For instance, you may have a financial goal to save a sum of $2, 400 within a year for a brand new Apple laptop. To achieve this goal, you will have to save nothing less than $200 every month. You will be able to save this amount easily if you track your spending.
4) It helps you know exactly how, when, where and on what you spend money
You will hardly know how, when, where and on what you spend money on if you don’t track your spending. Therefore, if you track your spending it, you will be able to define your spending pattern and make necessary adjustment. You will be able to detect your spending habit as well as notice your spending weaknesses and fix them.
5) It makes you conscious of your bank balance
If you track your spending, you will become more accountable financially. You will be able to account for how you spend and be cautious of running into debt or getting any overdraft fees.
6) It makes you aware of questionable charges
Tracking your spending will greatly help you to notice any fraudulent charges. If you track your spending, you will keep checking your bank account or credit card. This will make it easy for you to notice if someone is trying to siphon your money or if you are being charged for subscription you no longer use.
7) It helps you to be in charge of your finances
Everyone definitely wants to be in charge of his or her finances. To be in charge, you have to track your spending. This is really a great way to empower you and your finances. You will be able to block any unnecessary charges or expenditures. You will be in full control of what you do with your money and you will be able to save for the future.
So what are you waiting for? Start tracking your finances now before you go broke or run into debt.