TRACKING YOUR FINANCES

Most of us do not budget for our expenses and thus turn to spend more money on the things we didn’t plan for.

In today’s episode, we will be giving you 3 tips on how you can track your budget.

Tracking your budget comes with a great zeal to save money for the future. With the rate at which everything cost and problems pop up, many of us are unable to set a spending budget and so we get to spend everything. If you want to be successful, be it in business or just as a person, you have to learn to work on a budget.

1. CATEGORIZE YOUR EXPENSES

One of the main reasons we turn to spend more than we budgeted is because we do not categorize our expenses properly. In a scale of preference, you will have to list your top needs/wants in order of importance.

Do you need to go to the spa, market to get groceries, hospital for checkup, or even take the kids our for relaxation?
Well, then you will have to start from the most important. If not, you will end up running out of cash when the main things are not done. So have a priority list of your money activities.

2.    KNOW YOUR INCOME

A lot of us do not keep track of our spending because we don’t even know how much income we receive on a daily, weekly, monthly or even yearly. We turn to spend more than we earn. When you know how much you earn, you have passed the first test of tracking your budget. At least you get to know how to categorize your expenses in a scale of preference.

3.    IDENTIFY ROOM FOR CHANGE

Changing some financial habits will be a good step to tracking your budget. Most at times we turn to spend on things we don’t need. YES! Once in a while we need to please our wants but it shouldn’t be a habit. Identify those things that you need to stop spending on.

Alcohol might be one. Reduce your rate of consuming it.

Fast Food. You should practice cooking for yourself.

Show-off. You need to know that nobody really cares about how you live your life. You will be the one to face the consequences of being hungry and not able to afford needs while the people you were trying to impress will not be there.

Once you understand the value of money, you will understand why everybody wants it. Most business persons do not know how keep track their finances and so will always complain of not seeing where their money goes to.

In our next episode, we will be giving more of such tracking tips.

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