UNITED STATES—This might sound like a stupid question, but unfortunately it is not. Money it is something we all want more of. It is something that wields plenty of power and allows you freedom to do things in life that others cannot easily do. However, I want to pose an important question to you: do you keep track of what you spend? That may sound like a loaded question, but it is not intended to be.
Do I balance a checkbook each month? Yes, I absolutely do. People might think that is crazy, but I want to know where the money is being spent and how much is being spent. Do I write check as often? Not so much, but I do indeed write them on occasion to take care of certain expenses that are quite high in costs so I can track what is spent.
I know plenty of people don’t care about keeping track of expenses because they utilize a debit card, but you really should. Why? Each time you utilize that debit card those funds come immediately out of your checking account and I know plenty of people do not keep track of how many times that card has been swiped or your pin has been entered.
If you don’t, you run into a situation where funds that you think you have in your account, are not actually there, because there could have been a slight delay in the processing of them. It doesn’t take a lot of time to keep track of your finances and what you have purchased. You can be old school and utilize a notebook and a pen.
That is the approach that I take. I date the purchase, indicate what was spent and where the funds were spent and how much I should have in my account after the transaction. Others might be savvy and utilize a spreadsheet; which is a great way to have things organized in a strategic function. Don’t love the computer aspect because technology is always glitchy and you don’t want your entire financial life on a computer and you can’t access it.
When you write things down you have that backup and you can always look to it whenever you please. At the same time, you start to get a pulse on what those funds are being spent on and how you can potentially cut back on unnecessary spending that is putting a slight hamper on your budget and financial goals in the end game. What are you bringing in? What are you saving? Are you spending unnecessarily on things that should NOT be spent? Where can you cut back a bit to save more?
This is quite important in the new age because not many people know how to balance a checkbook today. They don’t understand the differences between a credit and debit and how to properly complete a balance sheet. Yes, we need a lot more financial literacy taught in schools, to better teach our youngsters the importance of finances. Not just about spending money, but saving it, where you are saving it and what you’re doing with those funds. People come into large sums of money and before you snap your finger; all that money is gone because they didn’t know any better.
Written By Jason Jones
