Is tracking money effective or not?
Everyone had their own money and earning in the platform. We have a consistent cash flows given by this platform and your salary in work. Then have you ever track your money? Like how much do you spent yesterday, last week and last month? I know some of us are not a fan of tracking and managing our finances. But, I want you to know that if you have money, then you should know how to manage it wisely.
I have been into financing lately. I kept listening to financial managing, tips on saving, ways of spending your monthly budget and so on. In fact, I really didn't feel like to manage my money since I don't have money to manage. And I know that's the most common problem why we are not into financial management. But, we all love money and spend our money to things we love to purchase.
Since I was young, I had this desire to breakdown my expenses for a whole day. Although I am not working and earning, but I still have daily allowance which is enough to portion it to details. I still remembered that my first ever money managing was when I was fifth grade. I have this kind of book that I would love to buy, but I don't want to tell it to my mother. The book is compilation of short stories and jokes.
You know, when we were young especially in grade school. There are a lot of vendors selling story books, coloring books, puzzles, grammar books and etc. So, in that point, I decided to save money for that. My daily allowance back then was ₱60. That money, I have to keep at least ₱10 everyday so that after a week or two, I can buy the book I want. Thankfully, I bought two or three books back then.
In those years, that was the time I was opened into world of financial budgeting. Although it's not professional since I as just a little boy, but it's more than enough for me. Thus, I don't have big money to budget too. Since then, I am tracking my money. It lasts for three months I guess because after I bought all the books I want. I stopped saving and budgeting. And I think that's the problem!
We stopped tracking, budgeting, portioning or whatever you called it when we already bought the things we want. It's like what is the purpose of this whole financial managing if we don't have a goal, right? Our interest in managing our money is lessening day by day. I am guilty in that. I thought that when you already had the things you wanted, then it's okay for you to stop managing your money wisely. That's a big misconception I had.
From fifth grade, I started saving again when I was in 10th grade. But this time, it is a book again. It was not a story book, but a grammar book. I started to save ₱10 a day so that after a month I can buy a new grammar book in Book Sale in SM Bacoor. Yeah, my heart and mind was so focused on saving and before I left our house I will leave the ₱10 in my cute little piggy bank so that I will not spend it on school.
Again, after I bought my first ever English grammar book when I was in 10th grade. I decided to stop saving and tracking my money because I have no purpose now. Why to save money if you don't where you will spend it right? Another mistake I had before. I thought it was okay to stop, well, it's okay to stop tracking your money, but as early as you track your money. It will become a habit that you cannot easily removed in your lifestyle.
That's why when I reached college, I started to do some part time jobs in our school library. In that way, I can earn some penny to add for my weekly budget. I just want you to know that tracking money is not about how big or small your money. Sometimes, we think that if my money is small and I only have few allowance everyday or every week. I should not track or manage my money. No, you have to track it because it's your allowance and it doesn't matter how much it was.
At first, I tracked my money through my notes. I jotted down my whole day expenses like food, transportation fare, school stuffs, and emergency. So that I know where my money went and I will think for a moment if what I bought is good and worth it. As some says, you have to spend money but not bigger than you can earn. That's right. For me, I only spend my money to daily and unavoidable needs. Everyday, I always allotted 10% for savings. No matter what happens, 10% is what I saved.
But today, I upgraded my tracking ways. I used excel now. It's way easier. You just have to enter the formula and that's it. You can also keep the data in a folder and review it when the time comes. At least, you know how much money is coming and how much money will be spend daily. It's very effective in a sense of, you are learning to manage your finances and you keep improving. Thus, you will realize what things to buy first. It's like a matter of prioritization.
I'm not impulsive person when it comes to spending. I always think two steps ahead so that I could analyze if it's worth it or not. Meaning, tracking your money is to track your way of living. You cannot live without money. You cannot avoid the influence of money. But, you can manage and track it the way you wanted. We all need money and you have to earn it. Even if you're earning small, that's still a good reason to start tracking your finances.
Hooray! Unending appreciation to these people above. They are source of encouragement to me to write well. I know you will become one too. Awiee!
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Thank you for reading and I'll see you next time!
I was also tracking my expenses by using a spreadsheet on my phone and I input my details every time. But I always lost track of my expenses these past few months because I forget sometimes to input my details. Now, I just limit my money to spend and set aside first my savings.