1) You actually know if you spent more money than you made in a given time period. This determines whether you can invest in your future or if your debt hole just got bigger.
A Silly Bit of Bookkeeping Fiction to Illustrate My Point
A respectable-looking Swedish hipster hops in next to you and randomly asks you to invest your hard-earned money in his business…what questions might you ask?
I really do credit much of my success to consistent money tracking. There is actually a not-so-widely known term for this process…it’s called “personal bookkeeping.”
OK, OK, I Believe You. So, How do I Deal with Personal Bookkeeping?
I bet right about now you’re thinking, “Cool Joe, but the title of your post indicated you would provide a solution for the problem of me not liking to manage my finances. Is there some way around this crap?”
When it comes to personal bookkeeping, the reality is, if you don’t track your income and expenses, you WILL OVER-SPEND on stupid crap. And therefore you will have less money to invest and help you achieve financial freedom.