WHY WE TRACK SPENDING?

Hi! Assalamualaikum. 

I never realized that tracking my spending helps me a lot with my monthly budget until I started doing it.

THINKING BEFORE WE SPEND THE MONEY

At first, it's really difficult for me to track my spending. But, as I put in into my new habit, it's getting better.

"The person who doesn't know where his next dollar is coming from usually doesn't know where his last dollar went." - Unknown

SPEND THE MONEY WISELY 

It is really good for us to write down where our money is gone. Where it has been spent on? What we spent it for? 

Here are some reasons why we should track our spending:

It helps define our financial reality. Actually, we will never know how much we really have to save and spend unless we write it down. I like the concept of 'paper and pen' in writing down the spending. Tracking our spending puts our money on record so we know where we stand in our finances. When we’re financially aware, bringing out the budget planner in us becomes easier. After all, it’s hard to budget what we don’t know.

It identifies our spending habits. Basically, there are things we buy to make us happy, sometimes to relieve our stress. It could also be a reward for a month’s hard work or a small thing we have successfully achieved. Those things aren’t necessarily bad, but there is a fine line between rewarding and splurging. So when we track your expenses, we get a reality check to help us adjust for wiser spending!

It teaches us to prioritize. We’ll never run out of things to spend on. Think whether we really need that thing or we just want to have it. As we track our expenses, we get a clear picture of things that need to stay, and those we can do away (or at least, put on hold). Just remember our priorities!

Source: Google image

It forces us to save. When we track our expenses, we get a good, hard look where our money goes. And so it reminds us also when we exceed our budget. Although overspending isn’t exactly good news to celebrate, it’s an opportunity to re-align our lifestyle to our budget. So, just review our list, and learn to say NO to those impulse buys. It always pays to save, save, save!

It helps us protect our money. When we track our expenses, we become aware of suspicious financial concerns like money fraud that we don’t easily notice when we don’t track our expenses. We can be proactive and start doing something about it. Just be alert with our money so that we might not lost it for something that isn't necessary.  

Source: Google image

I tried to do the tracking from here. Just click and watch okay.

Waallahu'alam.