Everybody needs to know how to save up their money. But do you know how to keep track of your personal finances? And what are personal finances? Personal finance is knowing about our financial goals like our retirement savings, emergency saving, and other important savings in our life. Personal finance usually takes up our monthly income and how we spend it. To make sure that we will be able to reach the financial goals we need to keep track of our finance starting from a young age. That is why we have SAP Finance Malaysia.
These are some ways for us to be able to keep track of our personal finances.
Check Your Account Statement
We need to always keep track of all our expenses and one of the ways to do that is by, checking our account statement. By doing this, we can keep track of where all of our money is being spent on.
Keep The Receipts
Every time we purchase something, we would get a receipt of our purchase, and instead of throwing away the receipt, you need to start keeping them. Having a receipt of all your purchases will help you to keep track of your expenses. You can also see which expenses that you need to slowly cut off maybe things like your morning coffee at Starbucks.
Categorize Your Expenses
Whenever you receive your monthly paycheck it is always good to set them aside first and take a look at your expenses category. See what are the things that you need to pay for as soon as possible. Maybe things like your house rent and your car loan should be prioritized first rather than buying things that you want.
Rather than buying all of the stuff that you want and have been aiming for, why not set aside your money for saving. After you have done paying all of your priorities, set aside a certain amount of money every month to put in your saving account. It doesn’t have to be a lot but you have to be persistent in putting money into your saving account.
When you see something that is eye-catching and you definitely want to purchase it. Step behind and think for a couple of minutes. Do you really need new items or do you just want them because they are new in trends? If you can, go home and really think about it thoroughly, and if you need them to go ahead and buy them. But, if you don’t need them then you do not have to buy them.
Record All Of Your Expenses
Every time you buy something, write it up in your notebook and write the price of the items. This way at the end of the month you can where all of your money go to and you can keep track of your savings. You need to record everything even the smallest and cheapest thing that you bought. Only then you can trace back where all of your money goes to.