The Best and Easiest Money Habit to Implement in Order to Change Your Finances: Review Your Spending Daily
If you’re like most people, tracking and reviewing your spending probably isn’t at the top of your to-do list. In fact, it’s probably not even on your radar. But what if I told you that reviewing your spending for just a few minutes each day could change your life?
If you’re looking to make a real change in your financial future, there’s one habit you should focus on: tracking your spending and review it daily.
Simply keeping tabs on where your money goes each month, you’ll be able to make more informed spending decisions that can save you big in the long run.
If you’re not tracking your transactions, it’s easy to lose sight of where your money is going. When you see every purchase in black and white (or green, if you’re using a budgeting app like Nav.it), it becomes much easier to identify patterns in your spending. Maybe you didn’t realize how much you were spending on coffee every month, or how much you were shelling out for dinner when you went out with friends.
Reviewing your transactions with Nav.it’s swiping allows you to review exactly what you’ve spent money on and how you now feel about each purchase. When you review your spending, you can ask yourself questions like “Would you make those same spending decisions again?” Also, if you consistently feel bad about spending money on it, maybe it’s time to re-evaluate.
2. You’ll save money.
When you’re more aware of your spending, it’s easier to cut back in areas where you may be overspending, including unwanted subscriptions. Afterall,55% of Americans can’t say how much they’re spending on automatic charges in a month.
You’ll also spend less.
We all know that feeling when we see something we want, but we don’t really need. We rationalize it, telling ourselves that we deserve it or it’s not that expensive. But then the guilt sets in after we make the purchase, and we wonder why we just couldn’t resist. And then we don’t enjoy it as much as we thought we would.
If this sounds familiar, you’re not alone. A lot of us struggle with spending impulsively, and it can be a tough money habit to break. But there is one simple solution that can help: tracking your spending.
Of those who track their spending, 79% spent less impulsively. When you track your spending, you are aware of every penny that you are spending. This makes it harder to rationalize purchases, because you know exactly how much money you have and where it’s going.
The benefits of tracking transactions are well-documented. A study by J.D. Power and Associates found that tracking transactions can help you save money. The study found that people who track their transactions are more likely to stay within their budget and are less likely to overspend.
The important thing is to be consistent and honest with yourself, so that you can get a true picture of your spending habits.
3. You’re more likely to achieve your financial goals if you regularly review your spending.
In case you missed it earlier, we did mention that you should track and review your transactions daily.
If you’re not tracking your transactions, it’s difficult to know whether or not you’re on track to reach your financial goals. Are you saving enough for retirement? Are you putting enough money aside for a down payment on a house?
You’ll make better financial decisions.
Another study, by the University of Toronto, found that tracking transactions can help you improve your financial decision-making. The study found that people who track their transactions are more likely to make better decisions about spending and saving.
When you track your transactions and review your spending, you can see exactly where your money is going and make financial decisions to ensure that you’re on track to reach your goals.
If you’re not keeping track of your spending, how will you know if someone has stolen your credit card and gone on a shopping spree? Or if someone has hacked into your bank account and withdrawn money without your knowledge?
Tracking your spending is the best way to catch fraudulent activity before it gets out of hand.
Also, when you see all of your transactions in one place, it’s easy to identify anything that looks out of the ordinary. This can help you quickly resolve any fraud issues and protect your finances.
Advances in technology have made tracking and reviewing your transactions easier than ever
In the past, balancing your checking account was a key part of financial responsibility. Every month, you would sit down with your checkbook and reconcile it with your bank statement. This process involved adding up all of your deposits and withdrawals, as well as any fees or interest earned, to make sure that the balance in your checkbook matched the balance on your statement. If there was a discrepancy, you would need to figure out where the mistake was and correct it.
Nowadays, online banking and mobile apps have made it much easier to keep track of your finances, avoid mistakes, and start stackin’ your money. However, reconciling your checking account and transactions and reviewing your transactions regularly is still a good habit to get into. It can help you catch errors, keep track of your spending, and make sure that your account is in good standing.
Of course, you could just use a pin and paper to write down your transactions. But that’s tedious.
Or you could use a simple Excel spreadsheet. But where’s the fun in that?
If you really want to get the most out of tracking your transactions, use a dedicated tool and money app like Nav.it.
Nav.it is the best transaction tracking tool on the market, and it’s super easy to use. Just download the app and create an account. Then, start adding your transactions. Once you connect your bank account, it will automatically import your transactions.
Once you’ve got your transactions tracked, you can start doing some serious analysis.
Tracking your transactions can improve your life in a number of ways. From being more aware of your spending to achieving your financial goals, tracking your transactions can help you take control of your finances and stress less about money. So if you’re not already tracking your transactions, what are you waiting for? Get started today and see the difference it can make in your life.
There are a number of ways to track transactions. You can use a simple spreadsheet, budgeting software, or even pen and paper. Whichever method you choose, the important thing is to be consistent and accurate in your tracking.
If you’re looking to improve your finances, tracking your transactions is a good place to start. By being more accurate with your money and making better financial decisions, you can improve your overall financial health.