
This article isn’t ultimately about money, but it does include a simple technique I can almost guarantee will save you tens of thousands of dollars, years of needless toil, and relieve you of an enormous amount of financial stress.
If you do this one thing, you’ll have a lot more money and a lot less worry, without any concerted efforts to earn more or restrict your spending. Probably the only way it won’t change your life is if you’re already doing it.
It isn’t difficult and it requires no new skills, only a few minutes here and there, and perhaps a daily alarm, or a strategically placed sticky-note, to remind you to do it.
Here it is: you ledger your income and expenses. Any money that enters or leaves your possession, you track in a spreadsheet or ledger by category. Then look at the totals at the end of the month. As a failsafe, sit down once a week for twenty minutes to make double-sure you did it.
That’s the entire commitment—just tracking the income and out-go. You’re free to buy whatever you want, as long as you track it. Go order $85 worth of tapas and wine, just make sure you ledger it. Go get a $350 handbag if you like, as long as you’re willing to type that “$350.00” into the “Clothing and accessories” column later that night.
Without any budgeting or self-imposed restrictions, you’ll automatically make far better use of your money, at least doubling or tripling the efficiency of your discretionary spending. You’ll gain a sense of control over your financial life and experience far less money anxiety, all without any conscious effort to spend less or make more.
It works because it’s impossible to be aware of the actual numbers behind your behavior without your priorities changing. It becomes easy to see where you’re getting value and where you’re not. A natural aversion to wastefulness emerges in your daily behaviors, with no self-scolding necessary.
In other words, the things that tempt you towards trouble become considerably less tempting, and that’s the vital point here—tracking your behavior, without striving to change it, gently reduces the amount of willpower and self-scolding required to do the right thing. Read More
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