SubscribeGetting to Know You and Your Money
Tracking your income and expenses is probably the most important thing I do every month. I can not stress enough how important it is to know your financial goals and actively pursue them. This past year I developed a monthly spreadsheet in excel which breaks down my income and expenses into common categories (car payment, electric, groceries, loans, etc.) Your spreadsheet should be customized according to your taste. Templates designed by others may not reflect what you are trying to accomplish. Each person has their own unique objectives and style. In other words, you should know your spreadsheet inside and out.
When purchasing something on credit, I always ask for the receipt, tuck it away in my wallet, and enter the expense in my spreadsheet as soon as I can. Some common problems of not entering income and/or expenses right away are:
- Forgetting to enter the data
- Losing any receipts or other data
- Creating more work and data entry at the end of the month which is not fun
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