Eight reasons to track your spending.
1.Accountability
First, if you crave accountability with money, then start tracking your spending. The action of forecasting your income and expenses and then at the end of the month entering your actual income and expenses will keep you accountable for your goals. Did you do what you said you were going to do financially? The numbers don’t lie!
2. Spend on what you value
Money’s the currency of your heart. Whatever you’re feeling, your purchases will follow, but often there’s a disconnect. For example, when you first track your spending, you might see all your money’s going to UberEats and Amazon. However, you realize you don’t like eating by yourself and feel remorse when online shopping. Instead, you value travel, experiences, brunch with friends, and time outdoors.
Seeing patterns of where your money’s going can help you adjust to spend more on what’s important to you and less on what doesn’t matter.
3. Mindfulness
American Psychology Association defines mindfulness as awareness of your internal state or surroundings and explains this practice helps avoid destructive and automatic habits.
If you don’t track your spending, you don’t know what’s truly happening in your financial life. Your mindfulness is limited. You gain awareness and insight when you track your spending.
4. Be an informed buyer
Knowledge is power. When you know what you spend, you can make informed decisions. This is as simple as knowing your car insurance premiums went up and then price shopping for a better rate. Or being aware of an increase in how much you spend on groceries.
5. Reduce stress
Psychology Today reported, money’s the leading cause of stress in America. One major stressor is unexpected bills or living paycheck to paycheck. Tracking your spending is a proactive habit and way to take back your control and reduce stress.
6. Achieve your goals
Think of your budget as your executive life bucket list. It puts a dollar sign to your to-do list. Whatever goals you have like going on a trip or buying a home, tracking your spending helps you to reach those goals. When you have a plan with money you can do MORE of the things you love. Instead of feeling restrained by a budget, start feeling empowered.
7. Avoid going into debt
It’s easy to swipe a card and not look at your finances, but this often leads to debt. When you see exactly what you spend, you can avoid overspending and going into debt.
8. Find ways to save money
When you track your spending, you’ll automatically see ways to save. You’ll see you’re paying for things you never use like multiple gym memberships or subscriptions you thought were canceled. Tracking your spending is a way to find savings every month.
All in all, there are many reasons to track your spending!
