Do you pay for everything you buy with checks?
Are you the kind of person who only uses cash?
or...
Are you like me and rely on your debit/check card for everything?
No matter how you pay for things, it's important to know not only how much you spent but also what you bought. When you know where your money is going, you can do more than one thing at the same time.
The first benefit of keeping track of your spending is that you can see how much you spend in each category.
Most people don't realise that if they know how much money is spent on a certain category, they will subconsciously try to cut back on spending in that area.
Second, you can set up a good savings plan that will help you avoid financial disasters by keeping track of what you spend.
"Plan for the unexpected!" is a good way to describe this situation.
If you have money saved up, you can be ready if something unexpected comes up. (For example, your car breaks down, the roof falls in, you get sick, etc.)
Keeping track of what you spend will also help you manage your money better. You'll know exactly how your money is doing. This is a great way to avoid or cut down on overdraft fees and other bank fees.
If your bank wants you to keep a certain amount of money in your checking account at all times, you'll know when you're getting close to that limit and can plan how to spend your money.
Lastly, tracking can help you feel better about things. If you do it right, you can feel confident that you have a good handle on your money.
Even if you have debt, you can make a plan to get out of it and get rid of the stress that comes with it if you keep track of it.
Some of the benefits of knowing where your money goes are listed above. Of course, there may be even more benefits for each one that we didn't list here. The most important thing is to do it. Even if you don't do anything else, you can save money, avoid fees that cost a lot, and be ready for almost any financial disaster.
