Knowing your financial situation is an incredible stress reliever because the unknown factor is removed from the equation. Worrying about the unknown can lead to many serious health problems and over a prolonged period of time you might develop more serious problems other than financial disasters.
Why should I track my money?
If your financial situation is tenuous and you haven’t spent any time trying to find out what the issue is, or you go to start then you throw your hands up in the air in the old “it’s all to hard” fashion, then let us give you ten good reasons to track your money.
- You feel more in control of your financial situation.
- Tracking finances makes you aware of where your money is actually being spent.
- You don’t get surprised (read: stressed out) when you receive unexpected bills.
- You can see tragic spending occurring and rein it in.
- You’re in control of paying off your debts, thus…
- You are in control of not creating any more.
- Using an app to hold receipts means potentially getting a bigger tax return.
- It spotlights your spending habits
- You’ll be aware of questionable fees, charges and strange outgoings.
- Curb impulse spending and adjust budgets according to real expenses.
Don’t know how to keep track?
If it really is all too hard and you don’t have any experience what so ever in managing your finances in an organised fashion then lets break it down so you can go step by step.
- Track your finances: All you have to do is write down everything you spend. Keep every receipt and write it down somewhere. Grab one of your kids old half used last years school note book. Rip out the used pages and start tracking. Find an app that will do it for you and keep copies of your receipts.
- Set up a budget spread sheet (here’s one we prepared earlier) and fill in all your tracked expenses. There are two columns. Budgeted spend and actual spend. This is not something to become anxious about. Just write in how much you think you should budget for and then how much you actually spent. Over a few months you’ll have a more realistic impression of what those costs actually are. Then adjust your budget or adjust your spending.
Two simple steps and you’re on you way to being a financial genius!
And you know what? We’ll give you one more, because we’re nice like that.
11. You’ll know where your money is going!! How could that not make you happy.
If you’re facing financial hardship we are here to talk about a solution. Call us on 1300 887 211 or Book a Free No Obligation Phone Consultation with our friendly team and we can discuss debt management options specially focused on your personal situation.