Tracking your spending is critical if we are going to change our financial choices. Before we can change our choices we need to know what our choices currently are.
Early-in-the-process tracking gives us our starting point. It’s the “You Are Here” arrow on the map. As we move along towards our goals, tracking becomes a way to make sure we are on target and moving in the right direction.
Another critical decision-making tool when it comes to finances is the budget.
The budget is the plan of how we expect the month to go. It’s a tool we use to measure our spending against to make sure our spending is in alignment with our ideals and desires.
Making conscious spending decisions will assure that your future is the future you want, instead of the future you end up with.
As you go along with your budget and tracking, you may want to analyze your progress. We may want to know if you are meeting your financial goals? If you are saving enough? Or, are you having enough fun?
The answers to these questions will guide you to make changes in your budget. Financial goals like saving for retirement aren’t met with a few big actions. These types of goals are met with small day-to-day choices.
Analyzing your results makes sure that your day-to-day activities are in line with your long-term goals.
Once we start making better financial decisions we will have a better financial life.
It can’t go any other way can it?
One of the things that will naturally happen when we start making better decisions will be that unimportant things start to get left aside.
-One Cent at a Time.com