Skill #1 Tracking
There are five money managing skills you should focus on developing.
- Track your income and expenditure and savings and investment
- Target on a clear financial plan
- Trim wasteful, superfluous or unnecessary spending and expenses
- Train your money managing skills and financial literacy. And;
- Take action and apply what you know
Skill #1 Tracking
Money dashboard is a fantastic tool to help you keep track of your finances. Once all your accounts are connected you can quickly and easily log in to just one place to keep an eye on all y our income and expenditure across multiple accounts.
They pull in your spending data and automatically “tag” your spend with categories to help you understand your spend. So it's incredibly easy to keep track of just how much you've spent going out this month or how much you've spent on takeaways.
You might be shocked at what you discover! For example it stunned me to discover I was paying about $48 a month in late fees and interest charges on a credit card. That's nearly $500 a year! If you are not good at managing your money now, I guarantee this is happening.
The good news is tracking starts to pay off really quickly. You might discover you are still paying for a gym membership you thought you'd cancelled, or just being aware of how much you've already spent on something in a month can help you realise how much you are spending and gives you choices.
I'd recommend once you've got Money Dashboard set up to try getting into the habit of logging in daily just to check on your transactions. It will really help you realise how much you are spending and give you choices.
Become a tagging pro
You’ll probably got a feeling for how powerful having it can be to have all your transactions in one place is AND having the additional insight that having them tagged into categories gives.
It doesn't really matter if you bought some of your groceries at Lidl and some in Sainsburys - what does matter is how much you spent overall.
Money Dashboard pulls in your spending data and automagically “tag” your spend with categories to help you understand your spend. However... though we have some pretty smart technology under the hood, our tagging system probably won't catch that your local shop called “Tasty Buns” is where you buy your coffees - so your favourite flat whites might come up as “untagged”. Other examples might be if you buy your lunch meal-deal from Boots it may be classified as “appearance” rather than "lunch".
We find that the people who benefit most from Money Dashboard are the ones who login regularly to keep their transaction tagging up to date. Keeping on top of your tagging is a great way to stay in control of your finances and will ensure that all your budgets and reporting stays accurate.
Find out more about how to be a tagging pro.