It’s true that “Money Can’t Buy You Happiness” but it is also true that you should understand the importance of Money. You’ll never have control over your money if you don’t know where it’s going. It’s important to know where you are planning to invest rather than thinking about your past disbursements. Tracking goes hand in hand with awareness and can help you avoid common pitfalls and establish better goals. When you start tracking your spending you’ll likely discover ways to spend less as well as find the encouragement and motivation to stick with long-term goals.
#1 Tracking Will Keep You Motivated
Tracking can help you form good money habits. It encourages you to continue with them. It is a great example of debt-free or savings goal charts. Use goal trackers to get in the habit of tracking the positive financial steps you’re making. This allows you not only to see your debt shrink or your savings grow but to associate that positive behavior with the reward of gratification as you work toward your goal. Sometimes the simple act of checking off a box is all it the reward it takes.
#2 Make and Review your Budget
It is important and has become a need to create a budget. You will have to think critically about how you are spending your money and look for ways to cut corners on your outgoing cash. You can start with a daily checkup and review your budget every day to remind yourself how much money you are allowed to spend in each category.
#3 Negotiate & Adjust Your Bills
Negotiate any bills that you can to help reduce your monthly expenditures and your debt so you can start putting more money into your long-term investments. Most companies do not want to lose their customers to their competitors, they are often likely to work with you to get your monthly bill down to a more reasonable amount.
#4 Review Your Billing Statements
You may not notice that your Internet or cell phone bill keeps fluctuating due to many small charges and fees that are tacked on to your monthly billing statements. If you take the time each month to go over your bills line by line, you will likely be able to find opportunities to reduce your bill by eliminating some of these charges.
#5 Track & Record Expenses
Tracking your expenses can be daunting because you have to be 100% accurate with your everyday money disbursements.
This is the most important financial habit to have. Make sure to keep all of your receipts, credit card statements, and notes so you are able to look back on each expenditure.
#6 Minimize Credit Card Debt
Debt is not always bad as it allows us to purchase a home or things which we think we won’t be able to buy in the future. Certain debt can be a friend, but most debt can also cause a lot of problems. Credit card debt is specifically bad because it is not for those “big” investments like a car and home, but for stuff that could often be lived without. Try to use fewer credit cards and go for other options.
#7 Try To Use Coupons
Try to absorb better money habits. It’s obvious there are some products that you have to buy, regardless of their price. Items like toilet paper and toothpaste are going to end up in your grocery cart every few weeks, no matter what. It can be advantageous to keep your eye out for coupons for such items that you can use whenever you need them. It is not always about avoiding spending money entirely but saving for the future.