Most entrepreneurs will agree that they are not a financial wizard and that is okay! However, it is important to be able to wrap your arms around your numbers and understand where your money is going.
I created a system of tracking my expenses and now it has become somewhat of a game to me. I am super interested to see what my profit margins are and what my bottom line is going to be.
There is a purpose to the madness of tracking your expenses! Just like tracking your time, mentioned in last week’s blog, you are able to see exactly where your time is going and in this case, where your money is going.
Real Deal. Tracking your money allows you to get a detailed report of where your money is going. You may not realize that you are racking up your expenses in postage or the money you spend on parking to meet a client at a Starbucks.
Take Control. Tracking your finances will, without a doubt, motivate you to change your spending ways. It is like being on a diet and your trainer tells you to write down what you eat. You become aware of what you are actually eating and you are able to control yourself. With a thorough description of what you spend each week, it will allow you to start saving where it counts. And be able to kick your spending habits in the butt!
Make More MONEY. Knowing exactly where your money goes, you will be able to save more and make more! This will give you a whole new perspective on how you can eliminate those spending habits. By seeing the exact numbers, you'll be able to strategize on ways to save by eliminating a few Starbucks trips or cutting back on postage.
How else does tracking your money help you? Leave a comment below!