Do you track your expenses?
Peter Drucker once said that “You can’t manage what you don’t measure.”
For me, this holds true in our personal finances.
Have you ever wondered how your income doesn’t seem enough?
Did you have a salary increase but you still can’t manage to set aside something to save and invest?
Do you really know if you’re overspending or underspending?
A new concept
I was recently invited by DZMM Teleradyo to discuss Financial Literacy. (And I was allowed to promote my book!)
One of the guests was Armand Bengco, another financial expert.
As we were discussing ideas about debts and personal finance, he mentioned an easy way to track your expenses.
Since the year just started, this is a perfect time to practice this!
You must list down all your expenses.
I suggest that you do it in a notebook or on your phone, whatever suits you best.
Now, all you have to do is to label your expenses.
- These are your needs. Your basic necessities to survive your day-to-day life.
- These are your upgrades. One example Armand mentioned was transportation. If you used to ride the jeepney or the UV Express and then you rode a taxi / Uber / Grab, that is considered better-to-have.
- These are your wants. Things that you can live without.
As simple as that.
The 90-day challenge
Over the next 90 days, label and track your expenses.
Just do it.
Spend normally. Spend how you used to spend.
After 30 days, observe.
Check if you have lots of better-to-haves and like-to-haves.
Be honest with yourself.
After your self-assessment, you would really become more conscious.
The second 30 days, you would notice a shift in your spending.
Little by little you would plug the leaks that make you overspend.
You would start to feel that you can really save and invest for your future.
Take note, it’s not bad to spend for today. What matters is that you also save and invest for tomorrow. Strike a balance!
As you build this habit of being conscious about spending, you will become more and more enlightened about how your money revolves.
If you’re really ready to start this journey of awareness, comment “GAME!” below and let’s talk after 90 days!
To our success in all areas of life,
Argel Tiburcio, CIS, RFP Graduate Member
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