The One Thing You Have to Do For Your BudgetOct 01, 2023
(Your Mojo Number!)
Budgeting is like the backbone of your financial well-being. It's that one essential task that can make or break your financial stability. Whether you're trying to pay off debt, save for a big purchase, or simply gain better control over your money, there's a single, non-negotiable thing you have to do: Track Your Expenses.
Tracking your expenses might not sound like the most exciting or groundbreaking financial advice, but it is undeniably the linchpin of effective budgeting. Let's delve into why this seemingly mundane task holds such immense power over your financial success.
The Power of Tracking
Imagine you're setting out on a road trip to a destination you've never been to before. You have a map and a general sense of the direction you need to go, but you don't have a GPS or any way to track your progress. What are the chances you'll reach your destination smoothly? Not very high.
Now, think of your financial journey in the same way. Your budget is your roadmap, guiding you towards your financial goals. But without tracking your expenses, you're navigating in the dark, making it nearly impossible to reach your desired destination.
Here's why tracking is so crucial:
- Awareness: Tracking your expenses makes you acutely aware of where your money is going. It's like turning on the lights in a dark room; you can see everything clearly. This awareness is the first step towards making informed financial decisions.
- Identifying Patterns: When you consistently track your spending, you start to notice patterns and trends. Are you overspending on dining out? Are there subscription services you no longer use? These insights empower you to make necessary adjustments to your spending habits and decide where you want your dollars to go.
- Setting Realistic Goals: Without a clear picture of your spending, it's challenging to set achievable financial goals. Tracking helps you understand how much money you have available after covering your essentials, allowing you to set realistic savings and debt payoff goals.
- Preventing Overspending: When you track your expenses, you're less likely to overspend impulsively. You know exactly how much you've allocated for different categories, helping you avoid the all-too-common pitfall of living paycheck to paycheck.
- Building Discipline: Tracking your expenses is a disciplined exercise. It requires consistency and commitment, traits that spill over into other areas of your financial life, such as sticking to your budget and saving regularly.
How to Get Started: The Moola Master Way!
Now that we've established the importance of tracking expenses, let's discuss how to get started:
- Get clear on your monthly income.
- List all your financial obligations.
- Choose your Financial Goals.
- Determine what percentage of your income you want to allocate to your goals.
- Find your weekly Discretionary Spending Number. (Your Mojo Number)
Now you know how much money you want to have available for discretionary spending. (Your Mojo Number)
All you have to do is track your Mojo Number. as long as you stay under this number you know you will meet your financial obligations and goals!
It's important to remember that this is just the first steps. After the first month or so it's important to evaluate how well your Mojo Number is working for you. Did you decide to put too much towards your financial goals and it is impossible. to meet your Mojo Number? It's time to adjust the percentage for your goals! Tweak it until it works well for you and then you have found it. Your Mojo Number!
Tracking your Mojo Number (discretionary spending) is undeniably the one thing you must do for your budget to succeed. It brings clarity, control, and awareness to your financial journey, making it a fundamental practice for anyone striving for financial stability and success. The best part is that you are deciding where your dollars go.
Would you like some help getting stated? Moola Masters provides a lot of tools to help you set up your budget and track your Mojo Number.
So, grab that financial roadmap and your metaphorical GPS, and begin tracking your Mojo Number! Your financial future will thank you.
Keep an eye out for the Moola Master App, take a look at our course below and use code OCTOBER for 20% off!