Keeping a financial diary is essential in helping yourself to get out of debt. It’s also one of the simplest initial actions to take, and it’s the foundation for developing good financial habits. It might be tough to keep track of how much you spend in a typical month in this day and age due to online eCommerce, debit and credit cards, mobile payment systems, and automated recurring subscriptions. Diaries are fantastic for keeping track of the events of your day, and a spending diary is the ideal to have for your financial health and wealth.

So why is it important to have a financial diary?

• Holds you accountable

Even after checking the bank balance thousand times, still people got no idea about where their money went. We tend to forget things easily where we lose track of our spending. Having a financial diary can help you identify places to improve by keeping track of your everyday purchases.

• Aids to reach your financial goals

There are many financial goals to aim for in life, whether you want to pay off debts, create an emergency fund, plan your retirement, spend on your vacation, or be financially ready for a family life.  A financial diary will help to see the broader image of your financial stability reaching the roots, providing the needed motivation to achieve your financial aims and become financially stable.

• Helps in budgeting

You’ll be able to narrow down a suitable budget that works for you by looking at how much money you have coming in each month and where it goes. afterwards, you can compare your original budget to what transpired with your money at the month end. Find strategies to adjust your budget if you overspent (or underspent) in particular areas.

• Aids to keep a track on your spending

It’s easy to forget about a payment, put off making a financial decision, or forget about an upcoming expense when life becomes busy. A financial diary will become a daily reminder of each and everything you need to do, so you’ll be less likely to forget. So you will be able to answer the question ‘where is your money going?’  or ‘Are you saving the amount of money you need to save?’ at the end the week or month.

A financial diary is extremely important to have if you are someone who spends a lot and does not keep a track of it until you lose all the money. If you do not prefer to keep a note book or write things down, you can always download one of the best money diary apps available on app store or play store. With the ever changing world, spending continues to increase thereby make sure to keep a record of it.