Is Tracking Your Money The Key To Becoming Rich?

Updated: December 23, 2020

There are a lot of ways to become wealthy — start a successful company, get rich in the stock market, inherit a bunch of a cash? But how many of those ways are actually achievable for people? Per financial experts there is one thing everyone could be doing (that many people aren’t by the way) that is at least part of the key to being wealthy: tracking their money.

Per Charles Schwab, the average American is spending around $483 a month on non-essential costs. Simultaneously, 60% of Americans report that they are living paycheck to paycheck. Seems like a bit of a mismatch, and the bottom line is actually pretty clear: if you don’t know where your money is going how are you possibly going to grow it?

Having your expenses mapped out in front of you means being able to see exactly where your money is going and exactly where you need to cut back. For example, say you are spending$15 on lunch every day. That might not seem budget breaking in a day or even in a week but that turns out to be a whopping $5,475 a year. Cutting that in half would be meaningful. But without starting those numbers down and truly tracking your money, how would you even know that?

Tracking your money is truly within your conrol, and something everyone needs to integrate into their life, like, immediately.

A few resrouces to better track your money:

  1. Truebill: This is the easiest app we’ve found to keep track of your spending. Simply link up your accounts, and you’ll easily be able to keep track of everything in one place.
  2. Digit: Once you’ve started monitoring your spending, you want to make sure that you are saving. Digit is an app that makes it really easy because it takes small amounts out of your checking account over time moving them to savings so you don’t even miss the cash.
  3. Investing: Once you’ve started saving, you are going to need to invest your money to really start to build wealth. Read our beginner’s guide to investing here.

Feature Image: Twenty20