When I start working with someone on their finances, step one for them is always tracking income and expenses. Not changing what they are doing, but just starting to take note of it. People come in and start talking about their priorities and goals such as get out of debt, save for college, save for retirement, buy a new house or car, etc. and about how they aren’t making the progress they want. We talk about their current situations (and I try not to scare them off with words like assets and liabilities) and I take some notes then I tell them to go home and track every penny they spend for the next month. It’s amazing how little most people know about their own spending, and if knowledge is power this is definitely how you get some power over your money. Continue reading “You’ve got to track your money”