Six years ago I was in a financial mess. I used to spend all my money on junk and of course, I had a lot of month at the end of the money LOL.
After starting my personal development journey, I've learned that tracking my income and expenses is crucial for creating wealth. And that was my destination. If you read this post there are many chances that you are looking for the same things.
So, I started tracking my cashflow. Though I used to earn not more than $300 / month, I've added that income to my personal finance software.
Now that wasn't the tricky part. The part that needed a long term commitment was adding all the expenses in the software. And that wasn't all - I added each and single expense in a specific category in order to generate statistics and charts at the end of the month/year.
That was indeed a game changer for me!
I now know how much money I have in my wallet at each time! Of course, I know how much money I have distributed through all my accounts. Having a visual representation of all your money accounts leads to a better control and discipline.
What did I earn by doing this?
- I became more disciplined with my money
- I became more responsible and stopped spending money on dumb stuff
- I enjoy a lot the idea of creating multiple income streams
- I started to save much, much more! When you see that you are building a small fortune it's an amazing feeling of prosperity, freedom and security. Nothing trumps that!
- At the end of the month I can see how much I spent of food, cinema, restaurant, clothing and pretty much everything else. I defined a lot of categories based on my needs.
- I can cut the expenses easily.
- I never ask myself the question "Where did I spend that much money this month?!" because I have my stats.
- If I borrow money to someone, now it's impossible to forget how much did I borrow, to whom and when I'll get the money back.
- I can easily see which income stream performs the best with 2 clicks.
- I can even set financial goals and track my progress. How cool is that?
MY CHALLENGE FOR YOU!
I want you to go to Apps Store or Google right now and search for a personal finance app and install it on your phone. What should you do next:
- Set up your income streams
- Set up your accounts (wallet, bank account, paypal) - and update them with the amounts of $ that you have
- Set up your main expense categories (food, free time, clothing). There are good chances to have all the main categories already set up as default
- Add this month's income in the app to start tracking
- Add today's expenses
- CONGRATS! You're done with your first step and on the right track!
I really do encourage you to do this first step right now! It'll be a game changer for you - I am 100% sure and you'll thank me soon!
I hope that you enjoyed my post and you'll take action right now. If you want me to be your companion in your journey for prosperity and wealth, click the link below and follow my blog. It'll be my pleasure to bring more value to you!