Why shouldn’t you keep track of your spending?

Bookkeeping is a good thing, and there is no denying the benefits of bookkeeping your spending. It can indeed help you to review your recent expenses and reduce unnecessary expenses for you or your family.

But the financial knowledge I want to share with you in this article is: Who shouldn’t keep score and why you shouldn’t. Let’s get on!

What kind of people should not keep track of their spending?

If you don’t own a business (hire an accountant), or if you don’t manage your family’s finances and your “income” is not high, then I don’t think you necessarily need bookkeeping.

Bookkeeping can help you know where you’ve been spending your money recently and find out why you’re getting low on money, or can’t save money, which may be spent in part on excessive entertainment, food, and drink, or dress-up expenses.

But if you want to succeed in saving money and becoming more and more wealthy, what you need to do is not bookkeeping, but “financial management concepts”.

What is the right concept of financial management?

In terms of daily expenses, you should first understand whether each expense is a “want” or a “need”, for example, the monthly fee of Netflix, the Internet fee of eating to your heart’s content, etc. It may not be necessary for your life.

For people with low income, instead of spending a lot of time on organizing invoices and keeping accounts, you should invest more time in yourself, whether it’s learning new skills, learning how to invest, etc. It’s most important to find ways to “tap into the source”.

Don’t look down on yourself

Many people like to use negative terms to belittle their own strengths. Then thinking that a monthly salary of $2000, $3000 or $4000 or $5000 can’t afford to buy a house without eating or drinking for a few years and can’t live a higher quality life, so it’s better to spend all the money and have fun in time.

But in fact, you may get a salary increase because of more years of service, or you may get a higher income because you change tracks, or even get a high year-end bonus if your company makes money.

However, if you still do not know how to manage your money, or do not have the correct concept of spending money and financial knowledge, you will not progress to a better standard of living.

Many people who earn $4000 or $5000 a month can slowly increase and accumulate wealth by investing in financial management, creating passive income, and making good asset allocations. And there are even many cases of people getting rich, as well as successful people who later transform into lecturers.

You just need to do the following three things, you also have the opportunity to live a better life

1. Develop the right concept of spending money: “need” or “want”
2. Invest in yourself, learn more knowledge and skills
3. Develop more (passive) sources of income: taking cases as a Freelancer, creating a side business, investing in stocks, funds, bonds, insurance, and even real estate and cryptocurrencies at home and abroad.

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