With the money situation in Nigeria, you can be N10,000 rich and wonder where it went in seconds. It can be hard to hold on to a certain amount of money for a long time, coupled with the increasing cost of goods and services. We can’t control the expenses that we have to take care of, but we can control how we spend our money to cater maximally to these needs. The importance of tracking our expenses cannot be over-emphasized. Apart from the fact that it helps prevent unnecessary spending and cater to necessary needs, you’re in control of your expenditure. Great feeling, right? You’re no longer wondering where your money went because you are taking charge of your finances and telling it where to go. Here are reasons why tracking your expenses is necessary:
It puts you back in control.
Tracking your expenditure puts you in control of your expenses. You decide where you want your money to go and how it is to be spent. Creating a budget and sticking to it enables you to have control of your finance. You know what you want to invest in and how much it costs. By this, you can easily detect any discrepancies through overspending or otherwise.
It helps you identify bad spending habits.
By tracking your expenses, you’re able to identify bad spending habits. That addiction you can’t seem to do without or that pretty dress you felt would look better on you than the mannequin or the fancy restaurant that cooks tasty meals, or the Netflix subscription you never use is what is making you go broke before you even realize it. You can easily identify these habits and cut them when you track your expenses.
It keeps you from overspending.
Creating a budget and sticking to it prevents you from overspending as you only follow what you have on your budget. Having something you’re accountable for helps you to avoid overspending. For example, writing a list before going shopping helps avoid spending unnecessarily and focus on things you need.
It helps you avoid debt.
By tracking your expenses, you’re living below your means which helps you stay out of debt. If you already have debts to pay, living below your means enables you to save more money to repay your debts quickly.
It helps you focus on your goals.
We all have financial goals we want to achieve, and it might seem impossible if we do not track our expenses. It can get frustrating in the long run if we are not getting the desired results. We want to live our best lives, live in a luxurious house, ride the latest car, but it might seem unattainable when we don’t take charge of our finances. Planning our finances enables us to focus on the financial goals we want to achieve and work towards them.
It ensures you catch fraudulent transactions.
When you can monitor your cash inflow and, expenses you can easily detect any fraudulent transactions down to unnecessary bank deductions. You can also discover subscriptions that are up which you didn’t know or forgot about. Going through your bank statement not only helps you keep track of your expenses but also helps you notice discrepancies you might not be aware of and tackle them immediately.
More people should tell their money where to go instead of asking where it went. The only way to do that is by planning your finances and tracking your expenses. Let dodopay help you live a financially free lifestyle.