Today’s mantra: I can manage my money on my own! I will empower myself to learn what I need to learn in order to build a healthy financial future!
Today’s action: Sign-up for Personal Capital and run through the other steps listed above.
I couldn’t agree more with Liz, knowing your money is the most important first step to taking charge, and making changes, to your finances. That’s why my first blog post was about the importance of knowing your money. The main takeaways are that knowledge is power, what you focus on grows and knowing what money you have and where it’s going reduces stress in your life.
I follow Liz’s first 2 steps, I track my monthly expenses and I know my net income. I’m not very good about tracking my net worth or my savings rate- it makes me sad that they’re not higher. But not knowing the numbers isn’t going to change them.
Personally, I like to use YNAB to manage my monthly expenses, because I like to micromanage expenses, unlike Liz. We’re lower income, so it needs to be micromanaged some. Personal Capital is a great resource to track your net worth. After you set it up, it displays your net worth right on the front page.
There are lots of different places you can track your monthly expenses. Here’s a list of some of the more popular options, along with the pros and cons of each. It doesn’t matter what you use- as long as you use it and works for you!
If you don’t already have a system in place, it can be intimidating to start from scratch, but just pick one and give it a try. How do you feel about your net worth and savings rate? Is it lower than you want or are pretty happy about where you are? Does it inspire you to do better?