Trade The Journey

Trade The Journey

Tracking Your Expenses

If you don’t recognize who this is, this is John Rockefeller. He was despised as he built Standard Oil into a monopoly crushing his competition into oblivion.  Known for his ruthlessness, rugged determination and his cold stoic personality. In his later years when the government forced fair competition, he became known for his jovial nature more than for the monopoly he once had in oil.

Whether you agree with what he represented or despise the amount of money he held, he did one thing extremely well. He kept a personal ledger, a small accounting book, with him and recorded each of his purchases. He did this until the day he died.

Most articles tell us to keep track of our expenses for 2-3 months to see how we spend our money. After this we form a budget and hope it lasts. How do we know if we are succeeding? or when to make adjustments? and possibly set new goals when we’ve reached the old ones? So far I’ve been able to keep track of my expenses for the last two years, missing a couple of days between the years.

It’s more routine now than before and I view it as a temporary but necessary discomfort. Doing this over time has provided me with a wealth of knowledge of how I spend my money (My personal money psychology) and the cash flow fluctuations I experience during different times of the year.   

I was also able to develop a budget and cash flow analysis that is realistic and will allow me to stay fluid, matching my current economic situation to a manageable budget.

Being able to go back to the same month in the previous year is both inspiring and informative. My goal is to make this a lifelong exercise so that I’ll be able to go back in time and remember from where I came. Everyone has their own way of doing things. This is just one strategy to help you find what works for you.

As long it (money) works for you.

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