As I mentioned in a recent previous post, Financial Principles: Lighthouses that Will Never Steer You Wrong, I want to expound on 10 financial principles that are absolute and unchanging an that if applied will dramatically change your financial life; today’s post will cover principle 2:
Money Mastery Principle 2: When You Track Your Money, You Control It. Corporations are required to track spending and assets, yet individuals are reluctant to take the time to track and control their personal spending. People who do track find they are wasting at least $312 every month that they could be applying to savings or using to pay down debt. Planning how to spend, and spending according to a plan is the key to becoming wealthy. To any responsible person, this should be the only option.
Consider the importance of tracking. If officials did not track the score in a basketball game, what fun would that be? How would know who won? If you did not have a gasoline gauge on your car, you might have to walk a long way when you run out of gas. In a similar way, if you don’t track your spending, how will you know when you have exceeded the money available?
All 10 Money Mastery principles are profound and extremely valuable, but tracking your spending has some of the most immediate impact and can help you get in control quickly. Without learning to track your spending, you will always be overspending, over-borrowing, never knowing when you can really go on a vacation and actually afford to do so, when you will be totally debt-free, nor how to plan for retirement. I suggest you learn how to control your emotional spending by keeping track of what you spend, beginning today.