How Expense Tracking Is Changing The Way People Budget
Whether you've loosely budgeted before, simply estimated your finances, or haven't ever thought about it, expense tracking will change your way of living. How? Take a look as we dive into five key ways that expense tracking will have a major impact on your financial life, and in turn, your whole life.
People have come to realize that accuracy in their budget through expense tracking helps them achieve their goals, stay motivated, and relieve money-related stress. But let's learn more about how this age-old yet seldom-practiced tracking method changes financial lives.
How Expense Tracking Can Change Your Financial Life
1. It's The First Step On The Financial Freedom Journey
Depending on your relationship with the concept of "financial freedom," you'll know that you need to save at least 25 times your annual outgoings to retire early.
However, it's hard to know how much you truly spend over this period. And that's where expense tracking comes in to save the day.
Tracking everything you earn and spend puts your foot on the first rung of the financial freedom ladder. It ensures you can continue living a life you love while saving for the life you want.
2. You'll Know Exactly Where Your Money Goes
When you first start tracking your expenses, you'll experience revelation after revelation. And yes, it'll make you rethink how you spend your hard-earned dollars.
Before tracking, it's understandable to think that you couldn't possibly cut any expenses or save more money. But that's only because you don't have a clue about where your cash is going. Knowing what you spend it on will allow you to take complete control of your finances.
3. It Relieves Money Stressors
If you're ending up with very little money in the bank at the end of every month, your life gets stressful rapidly. While money isn't everything in life, it can certainly feel like it when you're not in control.
Tracking puts you back in the driver's seat, enabling you to feel safe in the knowledge you have enough for everything you need. Because life can feel excellent just as quickly once you've mastered your money.
Recording your spending allows you to see what you're prioritizing and where you can reign it in to achieve a lifestyle you're content with.
4. You'll Actually Stick To Your Budget
Tracking expenses every day ensures you adhere to the budget you set. After all, a budget is useless if you can't measure how well you're sticking to it!
Review your records at the end of the month to compare your income to outgoings. If you overspend, you can look for ways to cut back in specific categories. If you underspend, you could consider saving more or paying off debt.
5. Expense Tracking Helps You Reach Your Financial Goals
You'll quickly lose focus if you don't have a plan for your money. Whether you're saving for a wedding, once-in-a-lifetime trip, or a house deposit, expense tracking will help you achieve your financial dreams.
However, we recommend setting short-term goals too. The minor achievements will carry your motivation forward toward your larger life objectives.
How Not To Let Emergencies Ruin Your Budget
When emergencies hit, it can be hard to stick to your life-changing expense tracking habit. But you don't need to let them affect your budget. You simply need to know where to look for quick crisis cash. Luckily, we have an option — registration loans. We use your vehicle registration to lend you between $200 and $1,500 in an emergency when you don't own your vehicle. Put simply, they're an alternative to title loans unique to Arizona.
You can get a registration loan from us at Southwest Title Loans by following the steps below:
- Complete the online form found on this website. It shouldn't take longer than five minutes.
- One of our loan associates calls you to talk you through the process, answer questions, and ensure you have the required items.
- After the call, head to your nearest Southwest Title Loans store. Remember to bring the required items, which are the following:
- A valid Arizona driver's license or another government-issued photo identification type
- An active checking account in your name
- An Arizona motor vehicle registration in your name
- A valid Social Security number
Get Registration Loans Today!
You never need to throw expense tracking to the wind when things go wrong. Get a registration loan from us at Southwest Title Loans to tide you over. Complete the application form, and our representatives will give you a call to help you through the process.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.