Tracking my money means that I keep record of all my income and expenses. For me keeping record is a must. I discovered that without budgeting and tracking my money I will not know how much of money goes into where and for what purpose. Nigeria is cash based economy where we use raw cash to pay for almost everything including cars, houses, groceries, pay for school fees etc.
So, keeping record is not easy, but at the same time it is not an option if you really desire to have a good grip of your finances. What I do is to enter all expenses on my note pad and transfer same to my lap top. This helps me in budgeting and tracking of my every naira and kobo.
Here are 7 reasons why I budget and track my money.
- I Budget And Track To Take Control Of My Finances
Budgeting my expenses means tabulating the things I need to buy and inputing how much I spent on each item .This allows me to know where I spent most of my money and what areas I need to cut down. With this exercise, I now have a good idea of my average daily, weekly and monthly expenses. Doing this helps me to organize my personal financial life.
- To Know How Much I Spent On Each Category.
When I trail my expenditures, I am able to see in a written form how much I spent, whether I have a deficit or surplus on all categories. Without a proper record keeping, there will be no basis for comparison and these things will be difficult to know.
- To Know How Much I Spend Averagely On Each Item In A Month.
Organizing my finances this way gives me a clue of the percentage amount of money I allocate to each product or services in a month and enables me to know how and where to make adjustments if need be.
Putting my finances down in a form of a plan gives me an idea of the recurring items in my budget and those that come every 3 months like school fees and yearly like the house rent or car maintenances and clothing which are not very regular. From budgeting and tracking bills on energy, security, fuel, groceries, credit on phone, water, gas, cables etc. I discovered recurring items that I spent my naira on. This helps me to organize myself better.
- To Help me Block Leakages
Writing down every bit of what you do or want to do with your money is not an easy task but the benefits cannot be overemphasized. You will be able to find out where the leakages are and block it. I realized that groceries is the culprit as it takes the greater parts of my expenses and I am working on spending less seriously.
6. I Stick To My Budget.
Knowing what my expenses are through tracking helps me to organize my finances and to stick to my budget there by bringing down the expenses and giving me more streams of naira to save.
7. Fast Tract My Goals. Budgeting and tracking my expenses and spending allows me to follow the progress of my targeted goals and to see if am meeting up and to know where to make the necessary changes.
The above are reasons why I budget and track my income and expenses. I track to help me see where am over budgeting and block the leakages thereby investing the saved money. It is not an easy thing but you will not regret starting this journey. I therefore recommend that in order not to lose the steam of the moment, take action immediately.
Do you know of other reasons for budgeting and tracking your naira, dollar, pounds, euro, yuan, rand, franc, and peso and other monies?