Last post gave three simple points to get your money sorted quickly each month. Here’s point One.
You’ll be miles ahead of the pack if you simply know how much money comes and goes from your life. Here’s how to find out. On paper, add up how much you got paid for the month (or pay period). Then, either through internet banking, software, or your bank statements, total up your expenses. Write the total on paper too. Congratulations, you just did a simple cash flow analysis.
When you see how much you earn compared to how much you spend, that’s the big picture. Hopefully, you spend less than you make! That’s one way people get rich. Next post: point Two for slackers.