"Tracking my finances does nothing for me..."
“But maybe it’s because I do not analyze what I track.”
That statement came from a participant of a group I teach every Monday.
His statement is a classic example of why it is no longer appropriate to toss out jargon or a statement and expect others to know what that jargon or statement means.
Truthfully, I used to believe everyone knew to analyze his or her financial transactions after the tracking process.
That’s why I used to only say ‘track your finances’.
It’s like remembering to turn off the water after taking a shower.
Everyone knows to do that, right?
No, not everyone does.
So me and other finance personalities cannot expect others to know that they should analyze the financial activity that has been tracked.
I’d like to do my part in taking a positive step toward clearer communication by explaining what ‘track your finances’ means.
To me, ‘track your finances’ is the same as 'track your money'.
And 'tracking' is the same as 'recording' the financial transactions.
Recording the financial transactions is part of the bookkeeping process for the business.
Tracking/recording/bookkeeping (keeping of the books) can also be done for your personal finances.
Now, for why you should analyze. In other words, how does analyzing your transactions help you and your business?
Big benefit: Analyzing your transactions helps you control your cash.
For example, analyzing can also:
· Support your income goal by showing you how much and even what you need to sell.
· Help you to meet your savings goals without sacrificing the things you enjoy.
· Solve the “Where did my money go?” riddle.
· Identify money mindset issues.
· Build a positive relationship with your money.
· Make tax season a breeze.
· Turn your dreams into a reality.
Question for you: Do you analyze your financial transactions after tracking?
Follow up question: What have you discovered during the analysis?
Cheers to your prosperity!