Tracking your expenses

PUBLISHED : Monday, 24 November, 2008, 12:00am
UPDATED : Monday, 24 November, 2008, 12:00am
 

Imagine a basketball match: teams score hoops, they run from one side to the other. But the scoreboard does not work.

Who knows which team is winning? Managing money is like sport. If you don't keep track, you don't know your score. And you don't know if you're winning or losing.

Tracking helps you to know what you spend your money on: snacks, outings, games and so on. You might be surprised to find that small expenses, repeated every day, add up quickly. You could easily spend half of your allowance on snacks while you wanted to save money to buy a game.

Tracking helps you to follow your choices and goals. By tracking, you learn to spend your money the way you really want.

Besides the expenses, keep track of how much you have: you can see your savings grow or go down. If you have money in different places - piggy bank, wallet or bank account - consolidate it. Then you will have an exact picture of your wealth. If you owe money, deduct it from your wealth. This is called your net worth.

Maybe you should consider making an investment.

Even if you don't have much money, track it. You don't score if you don't track!

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