The Need to Account Your Personal Expenses Down to the Last Cent
The reason why there are people who don’t earn that much, but are still able to step up the economic ladder is that they are disciplined. They understand that they have limited resources and they know exactly how to make ends meet. They don’t pretend to be someone they are not. They make sure that they account all their personal expenses up to the last cent, no matter how painstaking the process is. You should also do the same thing. It might sound silly, but if your goal is to be wealthy, then you should practice doing this.
No one else is going to do it for you
You know your expenses and you are the only one who can have an honest and detailed account of everything. You can’t expect other people to help you out. This is why you have to commit to this cause. Make sure that no matter how tempting it is to stop doing it, you should still push through. You have to carry on up until this becomes a habit.
Keep all receipts
This is one of the best ways to track your expenses. Make sure that you have all the receipts with you. Even the cheapest item that you have bought should still have a receipt and you must keep it. There are instances though when the item that you have bought does not have a receipt or you have used public transportation. You can still take note of the said expenses so you can track them later.
Download expense tracking apps
You can track your spending by using apps to help you simplify the process. You just have to encode your expenses and they will be tallied for you. The expenses can also be saved so it would be easier for you to list down everything that you have spent your money on.
Tally your expenses
At the end of each month (or week), you can create a tally of all your expenses so you can check if you have remained faithful to your budget. You will also spot the reason why you run short. By then, it would be easier for you to do better the next time around. In tallying your expenses, make sure to group them by categories for easy record.
Don’t lie to yourself
There are instances when you are tempted not to record what you have bought. You know it is not on the budget so you are embarrassed to admit it to yourself. You may try to hide it, but you are just fooling yourself. Stop lying to yourself and don’t try to cheat your own records. Besides, this is your own account. No one will judge you for failure to meet your budget. The point is that you track everything and keep a record of it.
You just have to keep doing this up until it becomes a habit. In the end, it will be easier for you to get rich because you are careful in whatever expense you spend your money on.
Photo Attribution:
Featured and 1st image by jk1991 / freedigitalphotos.net
2nd image by jimbophoto / freedigitalphotos.net
