It’s one thing to optimise your spending at your leisure when times are good, but what happens when it all suddenly goes wrong? Could you deal with having to drastically slash your expenses in an emergency?
Tracking spending is a cornerstone of progression towards financial independence
How much do you spend in a given week? or month? Do you know, or are you just guesstimating? In any given month I could have dozens of separate expenses, ranging from buying a cup of coffee (Latte Factor evangelists relax, it’s a rare occurrence) to my mortgage payments. With the number and variability in size of all these expenses, it’s hard to have a sense of what you’re actually spending if you’re not actually recording any of it.
My Pet Hate
Please excuse me while I have a short rant about a regular occurrence that really grates on me, and I imagine a good few of you too. It’s a small thing, really only four words, but it’s a concept that lies at the heart of why most people will never become financially independent. Those words?