You'll Never Get Ahead if You Don't Start Tracking Your Money.

I used to wonder why I couldn't keep most of the money I was spending.

Sounds like an oxymoron, doesn't it? That's because it is.

The truth was, I didn't want to do an audit of my spending habits because I knew I wasn't going to like what I'd find.

But at one point, I had no other choice. My only conclusion is that I should have started tracking my spending much sooner.

If you're serious about changing your finances, you need to first figure out which areas you're underperforming in.

For me, I spent a lot of my hard-earned money on unplanned outings and last-minute cravings (food or otherwise).

It wasn't until I set savings goals that I started tracking every single dollar that went in and out of my pocket.

It wasn't until I became intimate with my finances and aware that I was able to start making significant changes.

Here's why tracking every dollar is crucial.

You'll know EXACTLY how much money is coming in and coming out.

You'll get a precise picture of your income rather than wondering if you made enough money at the end of the month.

When I was younger (during my college years), I didn't care to know how much money I was making.

As long as I had enough to buy the food, clothes, and accessories I wanted, that's all I cared about.

But when reality and responsibilities hit after graduating, I realized I needed to get a handle on my finances to pay back my student loans.

I didn't start tracking my spending then, but I did start tracking my income.

I spent as little as possible on miscellaneous things, which helped.

But it wasn't until I turned twenty-six (two years ago) that I made a change and committed to knowing exactly how I was spending my money.

I bought a pretty notebook and started writing down everything.

I mean everything.

If you'd like to know exactly how I track my money, I wrote a blog explaining it in detail.

This is it:

You'll find out the areas you need to improve on.

Keeping a close eye on miscellaneous spending allowed me to become more disciplined.

And this newfound discipline bled into other areas of my life, which only had positive benefits in the long run.

I began writing every single expense in my notebook on a daily basis.

If I spent money that day, I documented it.

This opened my eyes to the reality of my spending habits.

I learned I loved to go on random and unplanned buying binges.

But rather than restrict myself completely, I developed a new system.

I allowed myself to splurge and buy the things I wanted after giving myself a budget based on last month's income and expenses.

If, in the past month, I had made more money than I spent (I was in the green), I would allow myself to spend some of that extra money on the things I wanted.

The rest of the money would go towards savings.

This way, I could still enjoy life, buy the things I wanted/needed, and continue to make progress toward my financial goals.

You'll reach your financial goals much sooner.

When you track your earnings and your spending, you're in complete control.

You know exactly what you have at the end of every month, and you can easily estimate a timeline for a savings or investment goal.

I remember for a long while, I wanted to save six months' worth of living expenses in case of an emergency.

But I dilly-dallied coming up with a plan to make this goal a reality.

Once I got into the habit of writing down everything and overcame the shame/embarrassment I felt, I was freed to take my finances to the next level.

As I said, I didn't want to do an audit of my spending habits because I knew I wouldn't be thrilled with what I found.

But it was necessary because, at some point, I needed to evaluate my finances to figure out what I could and couldn't afford.

I needed to know if there was a way to accomplish the goals I had imagined.

Fortunately, there was.

After tracking every dollar that went in and out of my pocket for a few weeks, I knew clearly how much money I was keeping at the end of every month.

Since I also had a very detailed account of what I was spending my money on, making the decision to cut back on some things was easy and clear.

I did this for over a year and eventually reached my goal of having a cushy emergency fund.

This habit also allowed me to repay my student loans (I've been debt-free for a few months now!).

And it's currently allowing me to make headway toward my investment goals.

*This information is for entertainment and informational purposes only. This is not to be taken as financial advice. If you need financial assistance, please contact a professional with questions about your situation and goals.*

I hope this inspires you to take accountability for your financial life and pushes you to take things to the next level.

It definitely takes some work, but the rewards of discipline are well worth the effort.