1. What is it?
Expense tracking is an important part of creating a budget for your small business. Keeping a daily record of your expenses by tracking receipts, invoices and other outgoing expenses improves the financial health of your budget. Tracking expenses can help you stay on top of your cash flow and prepare you for tax season.
2. The power/benefits of this daily habit?
By tracking business expenses daily, you control costs, learn exactly on what you're spending your money the most on and how much you're actually spending. These daily figures become your marker to see whether you're over or under your monthly budget. The entire process helps you become more financially aware and keep your focus on your weekly, monthly and yearly goals. Here are some of the most important benefits of tracking your daily expenses:
- keeps your eyes on the prize (financial goals)
- ensures you don't spend money you don't have
- prepares you for financial emergencies
- learn from your spending habits
3. Why is it important for your balance?
All anxiety and stress you might feel when it comes to your finances can be fixed with 2 simple steps: living on a budget and tracking your daily expenses.
The more diligent and disciplined you are about tracking your expenses, the less likely you are to make foolish financial decisions. And as you reduce your foolish financial decisions, you will reduce one of the leading causes of stress in your life: money problems.
4. How can I integrate it into my daily life?
Step 1: Make it a part of your evening routine to write down all of your daily expenses into your Mind, Body & Wealth Journal.
Step 2: Add it all up. And write it in your expenses tracker that you'll find at the end of the Mind, Body & Wealth Journal.
Step 3: Now compare the money coming in versus the money going out every month. Then adjust accordingly.