To review: how to not go broke, you must exercise your financial brain. You may want to keep track of all your receipts (You know those those annoying scraps of paper) that very few want to keep anymore. So the next time you buy something and the store clerk asks you if you want your receipt. You say Yes!
Review how to not go broke. Have you ever wondered how to not grow broke. In an age of electronics, where our entire existence seems to managed by the keyword we pick online, Its no wonder we have become just plain lot financially. In fact, I know business owners who think they are making a profit just because they have some money in the bank. Rest assured some of you may be under the illusion with your personal bank accounts.
Reviewing: How to not go Broke
Let me tell you a story that I heard several years ago. Farmer got up on stage and said the following. Scott, I have had a terrific year, I pulled in $400,000 this year. The only problem is that I spent $500,000. After he had finished speaking, I asked him how that happened. You know what he told me. I don’t know.
That day a very simple concept dawned on me. If you spend more that you make, you will always be broke.
Key concept
The key concept that I want you to take from this statement is that you cannot track what you cannot measure. You too can resolve that at this moment in time you will resolve to track your money. But you must now ask the question: How do I do that?
Concept Key #1
You should resolve to balance you bank account each and every month. That means using a spreadsheet like Google Sheets or Microsoft’s Excel to track your expenses. If you want to become a little more sophisticated you might even decide to use a bookkeeping program like Quicken or Quickbooks to track your income and expenses. Today you will find that many bank/credit union accounts will download directly into Excel, Google sheets and Quickbooks.
Concept Key #2
So here is what you should do. Keep all of your receipts for a period of one month, and put them into different categories. You may indeed be astounded at where you are spending your money. Once you know this information you can begin to make a change. Have you spent too much money on Coffee, food, or entertainment? Can you pay off your credit card at the end of the month? Have you put money into savings? Lots of possibilities here.
Next time we will talk about a flexible spending plan. Also known as a budget. So review how to not go broke!
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