Money Basics Part IV
Apr 30, 2020
Today let’s talk about tracking your inflows and outflows.
For those of you that took the time to do the exercises and brainstorm your money inflows and outflows, Congratulations! You are on your way to a better financial future.
For those who decided not to do those exercises feeling they might work for someone else, they just wouldn’t work for you, that’s disappointing however, I do understand.
Today’s exercise which should take only minutes a day for the next 3 months should convince even the most skeptical of you that tracking your money inflows and outflows can influence your long-term financial situation.
Today’s exercise involves getting a small notepad and a pen/pencil. This is to be kept with you at all times. Some of you travel light and for you, I suggest you use the note-taking function on your cellphone.
The exercise is to write a note each time you receive any money (inflow) or pay any money (outflow). Include the date, time, amount of money, and brief description.
For example:
- May 1: 8am Rent $250
- May 1: 8:15am Starbucks coffee $4
- May 1: 8:20am Gas station $22.50
- May 1: 3:15pm Paycheck $450
Do this exercise every day for the next 3 months. This will show you the items you regularly pay both monthly and quarterly. There are some bills, like car insurance that are often paid every 6 months or even once per year that could be missed if you only do this for 3 months. Once you have been tracking income and expenses for a few weeks it will become second nature and you are likely to gain some interesting insights into your spending habits.
So for your own financial well-being please consider giving this exercise a chance.
I believe in you!
