It is amazing how many people go to work every single day to make money, which for many is more than a third of their life, and have zero clue of where that hard earned cash goes. An article from thepennyhoarder.com states that “A little over 55% of Americans do not use a budget to manage their hard-earned income.” That means 55% of people go to work, spend their time doing crap for someone else, earn a paycheck, spend the paycheck, and have absolutely no clue where it goes.
The Problem
Whether people like to think this is an issue or not, it is. If you are not tracking the money you earn, you end up missing out on valuable opportunities.
Opportunities like saving for a rainy day, saving to go on a trip, saving for the future of your family, or straight up using your hard earned cash to create even more wealth for yourself in the future. All the missed opportunities lead to regret in the future when you look back at your situation and ‘wish’ you could be sitting on the beach 24/7 sipping cocktails with zero worries in the world.
The Solution
There are different reasons people do not track their money. Some do not think it is important. Some say they don’t have the time to do the work. Some are just lazy. Some admit it, some won’t.
The good part is that there are many different ways to track your money. Websites and apps like mint.com, Everydollar.com, or You Need a Budget (YNAB) can help you jump the hurdles that stop you from tracking your hard earned cash.
A simple spreadsheet on google docs or excel can be another way to start tracking your expenses. Heck, even writing down what you spend on a piece of paper can get you started and allow you to visually see where your money goes.
At the end of the day, this process doesn’t have to be done on a daily basis and it does not have to take hours out of your life every single month. But…. You need to be on top of your money so you don’t look back in 10 to 20 years and wonder where all your hard earned cash went.
If you want help sorting out your finances, connect with us and we will get you straight.