Why I Track All of My Expenses
I spent a lil bit more than I had planned to in the year 2016. I also saved more this past year than any other year in my life. For me, it’s all about balance and living within your means. I never want to spend more than I earn within a month but life happens. It’s perfectly fine too, whenever I have a month where I go over I try to add more to my savings the next month.
I spent over $42k in 2016!!! I couldn’t believe it until I checked my spending trends for the year at Mint.com
My expenses are up $7k from 2015 due to more payments on my car note and a trip to San Juan, Puerto Rico. Besides that, I actually spent less on food and bills in 2016 than from the previous year. I reduced my utility bills by moving to a more energy efficient apartment. I realized it costs way more to cool/heat an apartment with high ceilings lol which should’ve been obvious but I saved over $900.
I started eating out less and grocery shopping much smarter so I spent $660 less on food.
Overall, the reason why I track all of my expenses is for my personal organization. I treat myself like a business. When businesses seek more profit they become tighter with their budgets and slash unnecessary expenses. Unfortunately, some businesses fire people or shut down stores in order to create that profit but that’s another story. I like to see where my money is going so I can analyze where I can cut back and contribute more to different areas. Additionally, budgeting becomes simplified because you know how much you’re spending every month.
Tracking my expenses are vital when it comes to planning my future and setting goals. I’ve researched how millions of people built their wealth. The most common strategy I found were people who earned more income while living within or below their means. It’s a simple formula, but in today’s society, people lust for things they cannot afford. I don’t blame them because we’ve been programmed to spend this way. Once you change your mindset on spending everything else will follow suit. But in order to change a habit you have to find your “why”. Why do you want to spend less? Why are you saving more? Why should you sacrifice in certain areas of life? Find your “why” in 2017.