The reason why Data is one of the most important things in the world now is because you can track everything you are doing. Most companies need data analysis to make informed decisions about their business or their company. Everybody now understands why that is very important because it is not only important in our businesses but also important in our finances which most people don’t normally do. After all, they believe it is not necessary but I’m here to tell you today that tracking your personal Finances is one the greatest things you can do for yourself. I’m still learning to be better at this but It is one of the best things that can happen to you.
It is a general belief that you know money going in and also money going out in your business because that is how you can sustainably manage your business but after we make the money we spend it like water and this is why most people do not grow. They keep spending their profit without tracking it, believing that spending the profit is meant for them, which they are right, but they spend the profit on most of the things that they don’t need. Some people even spend money without knowing which is why it is difficult for them to account for all the pending.
Tracking your spending allows you to make better decisions with your money
The main reason why we buy most of the things we don’t need is because we are not tracking our spending. The main reason why we also spend without any sense of saving at all or planning for our money is that we are not tracking our spending and the only way we can be accountable and also make better decisions with our money is by tracking it. Sometimes people are well informed on where to put their money but they cannot save reasonable money at the end of the month while they are earning huge salaries and have a good income, this is a result of not tracking how they spend their money.
Another mistake people normally make is believing that some spending is insignificant like the Netflix subscription that you do every month or the coffee you buy every morning before going to work. We believe all this is insignificant but by the time you add them up in a year or two, they are also contributing to the reason why you have not been able to save. Some people have so many insignificant spending in their lives that are not tracking because they believe they are so small but when you start tracking your spending you realize that there are some things that you are doing that you don’t need.
It makes you aware
Tracking your money makes you aware and gives you the power to plan and make informed decisions about your money. It gives you an understanding of things that you are spending on that don’t matter and also things that you are not spending on that you need. When you are aware of where you are lacking, and what you are doing that is not good, It will be easy for you to make a plan to track your income. It is not only good for your business to track the spending but also good for you personally, you can use the data you get from tracking your income to improve your life.
Thanks for your time.