If you set a financial goal for yourself, then the next thing to do is to track your spending to ascertain if you're not spending money on frivolities. It is essential to track your financial performance so that you will not go astray.
What are the importance of tracking your spendings?
- Thread starter Reedex
- Start date
It is highly necessary to track your spending because this is what will ensure accountability.
Yeah, anyone that is interested in achieving financial freedom must be accountable to him herself. Without accountability there is no way you can be able to be financially free.
I don't prepare a budget but I do keep track of my spending. I think it is necessary to ensure that I do not overspend or spend on unnecessary items.
Yes, I totally agree with you, if you don't manage your expenses, it's easy to go crazy buying something that isn't important, so that it becomes a habit of a consumptive lifestyle which is a waste.
I believe that we should trace our spending in the sense that we must keep a record of our expenses in the best way. This may allow us to make sure that we do not spend a lot.
It is inevitable to spend money but it is also wise to be monitoring or checking them up. Some people overspend without knowing it because they did not plan or monitor their spending habits. It is a fact that cannot be denied.
The fact remains that many people have to deal with many expenses in a day. This also includes miscellaneous expenses as well that a person needs to deal with in the end. This could be a big challenge.
Definitely, am not tracking my expenditures but I use one strategy to keep my expenditure in check. The strategy is that I don't go out with more than what am likely to spend. If am going out I will only take with me my transport fare and nothing more.
This is a different dimension to it. But what if something happens and you have to spend extra. Maybe you have to chatter a vehicle instead of the regular public transport.
Tracking your spending is always important and necessary if you do not want to overspend money. I also try as much as possible to do that and that has actually made me to be making budget.
Tracking our spending allows us to see where our money is going. Is it primarily concerned with our needs or desires? If the latter is the case, it is best to avoid making unnecessary purchases in order to save money.
