The ONE Habit That’s Allowed Me to Remain Financially Independent.

Despite this terrible economy, inflation, price gouging, etc.

I remember the year I made stewardship my word of the year; it was 2021.

Ironically, it was the same year I started writing on Medium.

This and other entrepreneurial ventures didn’t turn out the way I hoped, but many lessons were learned, and that’s all that truly matters.

Along with my failed attempts at becoming a millionaire overnight (there’s no such a thing, but I fooled myself into thinking there was), I adopted the habit of tracking my money.

This simple habit transformed my financial life and outlook over time.

And I’m here to tell you that this simple habit can completely overhaul your finances, your mindset about money, and even the possibilities you see for yourself.

Here’s why:

If you don’t know where your money is going, you don’t know where you stand.

For a very, very long time, I had no idea how much money I made and how much money I spent.

Honestly, I didn’t care to know because I was a college student, and as long as I could pay for my entrance to the bar and the alcohol I was going to consume, that’s all the money I cared about.

Fast forward, and my mentality changes a little. I’m in grad school, and the reality that ‘adult’ life is about to start (including having to pay my student loans back) scares me a bit.

But nothing scared me more than the pandemic and being laid off… twice.

That’s when things started changing for me, and I committed to knowing precisely what I was spending my money on.

My first attempts were futile.

I tried to do the monthly budget but quickly realized that dedicating one night to an entire month’s worth of information was too much.

I also tried using apps to track my spending but realized I wasn’t into using them.

Finding a method I could stick to take some time, but eventually, I fell into a routine that changed everything.

If you don’t know how much money you’re making, you don’t know where you stand.

While tracking my spending, I also tracked my earnings.

I wouldn’t know exactly where I stood if I didn’t compare my expenses to my income, so I also tracked every dollar that made its way into my bank account/pocket (I tracked deposits and cash, including gifts).

Since this happened every week, I made it a more consistent habit to look at my bank account (and wallet) to see how much I spent versus how much came in in a given week.

I got so into tracking everything that I decided to write down what I spent daily.

This is the change that made the most significant difference.

On a daily basis, I looked at my numbers. I would see how much I spent in a day, two or three, and compare that to my weekly earnings, giving me a clear picture of where I was, but more importantly, where I was going.

Once I started figuring out the patterns in my spending and even predicting some of them, I was able to make the adjustments necessary to increase not just my savings goals but also my spending goals significantly.

Yes, spending goals. It sounds weird, but yes, I had goals for things I wanted to buy, and I know you do, too.

Leverage awareness to have complete control of your finances.

What does this mean? Get intimate with your money.

Find out exactly how much you make per month and find out exactly how much you spend per month.

The only way to do this is to track your income and spending in detail.

As I described above, it has to be something you do almost daily.

Otherwise, it won’t stick.

This method has helped me save over six months of expenses in case of emergency, pay off $15k in student loans (in a few months), and contribute $200+ a month to my investment account and counting.

Whether you write down what you spend every day in a notebook like I do, or you have a digital notebook or a spreadsheet, the point is you need to learn how you spend money and create new systems that allow you to prioritize keeping more than you’re spending.

That’s the goal you want to aim for every single month — keep more than what you’re spending.

That way, you’ll be able to do what I do.

I’ve been able to decorate almost my entire apartment, change most of my closet, and enjoy life while growing my savings and investment accounts.

I’m in the best financial position I’ve ever been in my life, and I know it will only get better.

It’s all thanks to the one simple habit of tracking my money.

Disclaimer — This information is for entertainment and educational purposes only. This is not to be taken as financial advice. If you need assistance, please contact a fiduciary/financial professional to help you with your situation.