One big financial mistake you are making

One big financial mistake you are making

Jul 23, 2020

3 mins

Augustine Ogwo

Augustine Ogwo

“The unexamined life is not worth living" - Socrates

Ever weighed in on the dangers of unexamined finances? If your answer is ‘no’, it’s time to have that money monologue and make a decision.

Ever weighed in on the dangers of unexamined finances? If your answer is ‘no’, it’s time to have that money monologue and make a decision.

Making better decisions as regards closely monitoring your personal finance is one goal we are all in pursuit of. It almost feels like a failed adventure until you start.

One major mistake you are making is refusing to invest in tools that help keep track of your finances. Fortunately, you can fix this by heading over to the App Store or Play store but before you do, read the rest of this article.

Financial freedom is impossible without taking note of your income and expenditures. One good way to start your journey to financial freedom is by ensuring routine check-ups are run on your finances.

How can you avoid the mistake of not tracking your finances? How can you go about it once you make that bold decision to start tracking every Kobo?

Let’s get right into it:

Log your transactions

You need to account for every Kobo made and every Kobo spent. You may struggle with consistency at the beginning but just keep going at it.

You’ve got to decide at what frequency you would love to do this; would it be on a daily, weekly, or monthly basis?

This can be documented on a spreadsheet or note, whichever you prefer. You may want to use two separate pages; one for income and another for expenses. You may also choose to combine both on one page.

For expenses, it is important to record not just cash transactions but also card transactions and bank transfers.

You can save yourself some stress by entering your fixed expenditures and utility bills at the beginning of every month. This is certainly a daunting task so we recommend you use an efficient money monitoring tool such as Eyowo for your transactions.

Analyze your finances

On a monthly basis, it is important to go through and analyze the records you have logged over a period.

One proven method of building wealth is to spend way less than what you earn. Analyzing your income and expenses will offer you insight into where you stand as regards income vs expenses.

In a case where your expenditure exceeds your income, you further scrutinize your records to see what expenses you can cut off.

Draft a budget

After taking into consideration the learnings from the previous period, you can then draft a budget.

This working budget will help you decipher what your money goes into every month.

What next?

We have highlighted what you need to be doing if you have been making the mistake of not tracking your finances.

But how easy is it to follow those steps religiously? To be pretty honest, it’s difficult to remain consistent but you can do so with some help.

Can I automate these processes?

Actually, there are a number of personal finance and budgeting apps that you can invest in. These apps will help you automate the processes highlighted earlier in this article.

But a number of people who use such apps and websites are increasingly getting worried about submitting their financial information such as bank passwords and account numbers to these apps.

These personal finance and budgeting apps need your bank credentials to help crawl your accounts and generate automated reports.

Lately, banks like Eyowo have moved to offer services similar to those offered by the third-party apps. That way customers like you will only need one finance app; which is your bank app.

For example, the Eyowo app comes with an expense tracker which breaks down your transactions into categories such as bank transfers, bill payment, and savings deposit.

This is in addition to the transaction history page that shows all your transactions and can be sorted into credit, debit, bills, and interests. You can also search for specific transactions and monitor upcoming payments.

Because of these features, the Eyowo app will now become not just your bank app but your personal finance tracker app.

On Eyowo, you’ve got everything in one place and you are good to go. Get started on Eyowo right away.

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