I was calculating the amount of my expenses for January and I almost died. I had spent Php 53,000. How could I have missed all of those expenses. Even after feeling the deepest remorse and regret, the good news is that all of these were paid in cash, and so was the Php 21,000 more booked into my credit card. I actually got to pay for all of these. How? I have no idea. They say that God gives you in time of need, so maybe this is ‘the’ time.
Anyway, it was actually a good thing that this $#1+ happened. Now, I know what to do.
The best thing is really to monitor your expenses. I’m a relatively techy person but for expenses, I want everything written down in a notebook. You simply have to have 3 columns: Date (first column), Expense Type and Particulars (second column) and the amount (third column). You can easily do this in excel. I do it in excel. For the expense type and particulars, have a general category in mind. For example, this can be “Meals”, “Coffee” (it can go together or in a separate group if you’re a coffee addict like me), Medicines, etc.
This tracking can do you wonders. I now am very conscious of the things that I buy. It’s good to review your expenses after every month so you can see where you actually slipped and lost control.
After reading a lot of books and methods to become rich quicker, this is the first SIMPLE step to financial freedom. All you have to do first is to know where you are at, and monitor what you are currently doing is the key. Don’t change anything yet. You have to realize your ‘financial’ habits first before stepping up to change anything.
Good luck in monitoring expenses for this month!