Try to remember all those money you spend for the past three months. Do you still remember where did it go? If not, you need to see the benefits of tracking your expenses. It was made easy with income and expense tracker available online.
I always track my expenses and became a habit for more than a year. I stopped recently since I had a problem with my online banking account. I was only able to recover it until I proactively asked them to disable my old account so I can create a new one instead.
Last night, I am super excited to track my income and expenses. To my surprise, I lost 40,000 from net worth. I know it was my mistake since I am not making conscious spending but if I know I am already spending money more than than 50% of my income, I would surely stop.
Imagine, just because I did not track my income and expenses, I lost 40,000. These are the reasons why it is important to have an expense tracker.
It will easily help you achieve your target. If you are preparing for the education of your kids or saving for your dream house, you can easily break down your target amount into months. If your target savings is ₱120,000 within a year, then you can save ₱10,000 monthly.
It will reveal your bad spending habit. A part of an expense tracker is a category of where your money is being spent. By looking at your expenses at the end of the month you will see if you spend too much on food, entertainment, transportation, and clothing. Once you get the idea, then you can make a conscious effort on fixing your bad spending habit.
It will help you prioritize your spending. If you have a budget tracker, you can easily choose what expenses you need to get rid of and what expenses are very important. Knowing what needs and wants will guide you in every decision.
Sometimes it would feel like you are limiting yourself with your hard-earned money when you are tracking it. However, if you get used to it, will minimize or possibly get rid of financial worries. It will also help you achieve your financial freedom and spend money without limitation.