I’ve been monitoring all my expenses since 2013. I first got the idea from John D. Rockefeller who was well known for his bookkeeping skills. If I could talk to him and ask him his one piece of advice about managing money, he’d probably tell me “Monitor your expenses”.
Monitoring and controlling my expenses has led me to a better understanding about myself and how I use my money. It gave me the ability to actually learn more about who I am as a person. As corny as it may sound, I believe monitoring my expenses gave me a form of financial superpower. (I’d be really flattered if you want to call me SUPERDOLLAR).
The ability to learn more about yourself should be convincing enough for you to start monitoring your expenses today.
If you don’t already do it, start today and enjoy the benefits that I’m about to describe.
1. Monitoring your Expenses allows You to Understand your Spending Habits.
We often spend our money without being 100% conscious about what we’re buying. Tracking your transactions precisely to the last cent will help you know exactly where you’re spending your money.
2. Gain a sense of Empowerment.
Once you start monitoring all of your expenses, you will feel a sense of empowerment from being able to gain control of a very important aspect of your life (Your Finances, duh!). A lot of stress comes from the uncertainties of life…so why not take control of something you’re capable of doing and empower yourself? You should know precisely where you spend your money!
3.Understand the usefulness of money.
Money is essentially a resource for you to achieve the things you want in your life. Most people spend their time chasing money as the end result, and that’s a flawed way to treat money. Money should only be a means to an end. You must use money as a resource to help you take a nice vacation, buy quality clothes, buy or rent your dream home, etc (or whatever you value as important).
4. Eliminate wasteful spending and reduces stress.
Once you start monitoring your expenses, you will notice exactly where you’re being wasteful. Wastefulness leads to problems. Example: Maybe you tend to waste money on binge drinking at the bar on the weekends (WASTE), and that causes you to pay your bills late because you’ve squandered your money (PROBLEM). When you start monitoring your expenses, you begin to see where you waste money. You essentially create a trail that tells you exactly where every dollar is going. Knowing the facts will give you the ability to reduce or eliminate wasteful consumption. Your life will become less stressful and you will have more money to spend on things that matter.
You must take action now! I hope you’re convinced about the importance of consciously monitoring your spending because it’s something within your control. Don’t wait. Start today!
Do you think controlling and monitoring your expenses would be beneficial to your life and personal finances? Are you interested in learning how I monitor my expenses? Let me know in the comments, I’d love to have a conversation with you.