Yesterday we mentioned the importance of knowing where your money is going. Consider if where you work, they had no idea where their money was going to or coming from how long they’d be in business? For any company to stay in operations and be profitable, they must track their money flow. Fortunately, if a company is intending to stay in business for any time, they’ll have an accountant take care of this.
I’m not suggesting that everyone go and hire accountants to do their money management for them, although if you were an accountant I’m certain that you’d like that idea. However, having a way to keep track of our money flow daily is just as important as any profitable company!
If you’re not used to this, then this is something that must change and become new in ones life.
To start, let’s look at our money situation. Consider these questions:
- Do you know how much of your money is available on a daily and a weekly basis?
- Are you familiar with how much is left in your checking account after all the bills are paid at the end of the month?
- Are the amounts on your bills consistent or will they vary from month to month?
- If the bills vary, do you know when that will occur and by how much they will change?
- Is the amount you receive as income a consistent amount or does it vary?
- If your income is variable do you know how often it can vary and by how much?
- Are checks being written that you may or may not be aware of until after they are cashed?
- Do you and anyone else in your family have access to your account through a debit card?
- If so, do you communicate to the other(s) when making separate purchases?
- Do you use cash to make purchases or are they strictly through credit card or debit card?
- When making a purchase do you accept/request the receipt, or do you ignore it?
We’re not all accountants when it comes to our own personal financial accounts but being aware of those finances and where they’re going is necessary if we’re ever to be in control of them.
Right now, some might be considering taking a huge next step to find ways to be tracking their money. There are some excellent ways to do this, but I’m not going to get into any of that now. I’m suggesting that if anyone is willing to make some changes then let’s start small and first see what we’re spending the money on.
Let’s start with picking up a receipt anytime we buy something. After a week look at all the receipts and see what’s been purchased. At that time, this may also help to open our eyes toward some of the necessary items that were purchased and consider reevaluating just how important some of those items were!
This will give us some idea of our weekly spending habits, and ideas of where we might need to begin making those changes.
We can’t fix a problem if we don’t know what it is. Starting small with just obtaining the receipts for our purchases helps us to narrow down our focus and to identify where changes should begin!
Believe in yourself,
Warren La Duke