She Strengthens

The Power of Tracking: How One Simple Habit Changed My Financial Life

Growing up in a lower-class Asian family in Calgary, I was always aware of the importance of money. From a young age, I made conscious decisions about my spending, even putting toys back on the shelf because I didn’t want to burden my parents. This mindset stuck with me, and on February 28th, 2010, I created an Excel document called “Record of Money” that would become a game-changer for my financial future.

Lesson 1: Awareness is Key

At 13, I started tracking my purchases without knowing it was a recommended tool by financial experts. This habit made me more money-conscious, and I encourage you to do the same. Start a money document on your computer and track every purchase for a month. The act of writing things down brings attention to your spending, helping you evaluate your purchases and identify patterns. Try it out and see the difference it makes!

Evolving with Your Spending

As I grew older, my responsibilities and expenses changed, and so did my Record of Money. I adapted my spreadsheet to include necessities and recurring bills, using a color system to categorize spending. This helped me understand my biggest expenses at a glance. Customize your document to fit your needs, and keep recurring costs at the top of your list.

The Insight of End-of-Month Totals

Reviewing my spending at the end of each month provided valuable insights. I tracked categories like food, shopping, and experiences, making adjustments to stay within budget. I also noted months with high expenses, like birthdays and holidays, to prepare in advance. Try creating categories and totals to get a better grip on your spending.

Taking Control of Your Finances

The more I paid attention to my money, the less power it had over me. By knowing exactly how much I spent each month, I could make informed decisions and avoid debt. View money management as a habit, not a chore. With time and practice, it becomes second nature.

Looking Back on Your Journey

After 10 years, my Record of Money has become a nostalgic and helpful document, showcasing my growth, mistakes, and accomplishments. It’s a reminder that taking care of your finances is a journey, and it’s okay to make mistakes. Be honest with yourself, forgive your mistakes, and use your Record of Money as a tool to improve your financial literacy.