Want Your Money to Grow? Start Tracking It.
What I’m about to say might sound a little crazy…
I have tracked nearly every dollar our household has earned, spent, and saved over the last three years and counting.
I can tell you how much was spent on gas in last year, groceries two years ago, or rent for the past three years combined.
With just my laptop and Google Sheets, I’ve manually logged each deposit, transaction, and account transfer, one cell at a time.
It’s all been worth it because of this simple idea:
What you track grows
When it comes to personal finance, I’ve found this to be true. Tracking leads to growth and who doesn’t want their money to grow?
🙋♀️ Umm, sign me up, please!
Why You Should Be Tracking Your Money
The benefits of tracking can be seen in many areas of life. Take personal fitness, for example.
Each time you work out, small improvements to your strength, stamina, and overall endurance occur. Viewed in isolation, these changes may seem insignificant, but when tracked over time, it becomes much more apparent how these little changes have compounded in a big way. Being able to see the results of your hard work is an excellent source of motivation to maintain a healthy lifestyle.
In regards to your money, tracking offers similar benefits. Whether it’s tracking savings goals, monthly expenses, or your income over time, doing so brings to light both positive money habits and those that should be kicked to the curb. This vital insight can set you on the right path toward a healthy financial future.
As a result of my borderline obsessive money tracking habit, I’ve experienced positive growth in a number of areas but the following two have been the most significant:
Financial Awareness
Over the years, I’ve become much more aware of how much of my money is being spent and exactly what it’s being spent on.
Savings
Tracking has helped me build good saving habits. As the balances in my savings accounts have grown over time, so too has my commitment to this practice.
So here’s my challenge to you:
Pick one money metric to track for the next 30 days. It could be your expenses, the amount you save, or anything else that makes sense for you. Then, use the knowledge gained from this activity to set or readjust your money goals and priorities.
