2 Critical Tips To Help You Keep Track of Your Money

Advisor August 16, 2021

If you’re a millennial, you must’ve heard the catchphrase, YOLO (aka “You Only Live Once”). There was a time when people swore by it, but in today’s money-deprived world, thankfully, everyone has become a little realistic.

Today, our cultures and beliefs have drastically shifted to a practical way of living, which means paying extra attention to wealth creation, financial freedom, and bridging the net worth gap. But there are still scores of people who are struggling to catch on to this thinking. After all, it indeed is a huge mental shift, and big changes don’t happen overnight.

Josh Appel/Unsplash | Many people don’t have a constant track of where their money is going

Speaking of personal finances, do you know there are several people who don’t have a constant track of where their money is going? It may sound dumb, but the truth is, many of us fall in that category. Regardless of what you think your level of financial awareness is, there can always be hidden loopholes you can completely miss looking at.

Therefore, in this post, join us as we skim through a few tips that will help you keep a track of your funds.

Always question yourself

If you really cared about the countless hours of work and dedication that goes into earning every single penny, you’d never make the mistake of mishandling your funds. The easiest way to bring in change is by asking yourself the right questions before investing or spending.

Start with the simple question of how much money do you make. Leave your gross salary aside, we’re talking about your net income here. You should be well aware of the money that remains in your account after paying utility bills, EMIs, loan interests, insurances, etc. We recommend memorizing that number, or else you’ll end up making money plans for an amount that doesn’t even exist under your name!

Iryna Tysiak/Unsplash | Always keep track of your net earnings and spend only according to that

Stay away from plastic money

If you’re a regular user of credit cards and swear your life on them, beware; you just might be in grave danger. When you swipe a credit card, it feels like you didn’t even spend a single penny, but that doesn’t mean you’re not going to pay the bill at the end of the month.

It’s common for people to get a bit over-excited and hoard up the cart when on a shopping spree, but it’s critical to remind yourself that it’s not doomsday yet! There will be another time when you can buy some of the things you’ve piled up right now.

Now, obviously, you’ll pay with the help of your friend in disguise – the credit card, but can you imagine how much money you might have wasted on such adrenaline-high shopping? If you’d planned to stick to a limited budget, you’d have shopped meaningfully and saved so much money.

rupixen.com/Unsplash | Swiping credit cards may seem convenient, but you shouldn’t forget that you have to pay the bills to all expenses made with them

So what’s gonna be your move?

It’s the small changes that make the most difference. Always remember that. It might seem a lot to take in right now, but the more you’ll think about it, the more lucidity you’ll have. Planning a secure financial future isn’t tough, and you don’t need to cut down on fun or shopping. All you need to do is think mindfully and make the right spending decisions.