Memory And Numbers
Do you remember what you ate 2 days ago?
If you struggle with that, then how do you think you'll remember where you stood in terms of your money 2 days ago?
You can't improve what you don't measure.
How do you know if you're trending up or down? Or hovering around the same?
Last year with my expenses and my big move across Canada, I was in the negative by a few thousand dollars in net income.
And I didn't realize this until I added all my numbers up.
But I had the cash in my bank accounts... The numbers matter. And they tell a story.
After i started tracking all my numbers, I've been able to spot the leaks much quicker and recover faster.
This allowed me to build a solid foundation in Q1 so that it doesn't happen again. (More on this another time).
What you measure is also important.
I hate tracking calories, but I do track the number of workouts I do. And that's something I can control and less things to take into account.
When it comes to personal finances, i come to realize it comes down to three things primarily: expenses, income and savings.
Cover all three and you've got the basics.
And without relying on your memory of your numbers, you can track these so you know how you stand in a given day. And it just takes a few minutes a week.