Most wealthy people can tell you exactly how much money they have in their pocket or purse. The money they do spend is tracked carefully.
You need to know where your money is going – all your money. If you write checks for cash, or debit your checking account for spending money, do you know where it goes?
If you don’t, you’re not in charge of your money.
Maybe all your cash expenditures are well placed, and yet maybe you’re over-spending on little items that add up to big cash outlays every month.
Take a checkbook register and, as you would with a checking account, put the balance of cash you now have in your purse or wallet at the top. For two months, whenever you spend cash, put it down and deduct each expense from the cash balance in the register. Move those cash outlays to your Cash Flow Statement, by category, once a week. Start adding up where your cash goes.
You may be surprised at your eating out totals, your latte totals, or even your parking fee totals.
Decide if you want to change some of those cash spending choices now.
Habit #8 coming – Tracking Income