Tracking Personal Finances

Actions are controllable. What we think, what we say, and what we do all play a role in our personal financial success. And, having control of your finances is important to achieving financial security. Feeling financially secure means freeing oneself from the pressures of financial reliance on others to weather both expected and unexpected financial events. Not having to rely on external financial assistance from family members or a third party lender is achievable no matter where you find yourself in life.

Unlearn Bad Money Habits

Regularly reflecting on your spending actions, behaviors, and outcomes, and aligning your actions with personal financial goals can help you identify areas in need of improvement and help you hold yourself to a higher standard. Figure out where your money is going. Every source of income and every expenditure should be included in your analysis. Identify patterns and habits that you might not have been aware of previously and look for opportunities to eliminate unnecessary spending-unused subscriptions, daily trips to the coffee shop, or penalties from missing a due date. Learn from these experiences and create meaningful decisions to help you steer clear of overspending in the future.

Avoid New Debt

Tracking income and expenses can help you avoid taking on new debt. Adding up the amount of money paid in interest and other fees to pay off a car loan or carry a credit card balance can be motivation enough to help you avoid any new debt, and also help you achieve freedom from the existing debt sooner. Plan for how you will use your money monthly and make an effort to stick to it. Credit card balances should be paid in full monthly, and loan payments and utility bills should be paid on time. Equipping yourself with a plan for how you will spend your money will not only help you lower or eliminate interest and late fees but may help you improve your credit score as well.

Budgeting Tools

Budgeting tools- whether a spreadsheet or template, a budgeting app, or financial software-will make it easier to manage your finances and to reach your future financial goals. Look for a product that you are comfortable with to share your financial information. Some apps and financial software allow connections with financial institutions including banks, credit card companies, and brokerage firms. Regardless of the tool you choose to control your spending, a commitment and personal attention to the product will be necessary to achieve your desired financial outcomes.

Financial security is within your reach. Educating yourself about personal finance, living within your means, and tracking your personal finances are all good habits to set you on the right path to financial success. The more you learn about money now, the less money problems you will have to face later in life.