Mrs Frugalwoods writes:
Tracking expenses is one of the best–and easiest–ways to get a handle on your finances. You absolutely, positively cannot make informed decisions about your money if you don’t know how you’re spending it or how much you have… Without a holistic picture of how much you spend every month, there’s no way to set savings, debt repayment, or investment goals. It’s a must, folks. No excuses.
Do you agree? I don’t.
In my opinion, your spending should not determine your saving rate or debt reduction goals. Rather, saving first, automatically, steadily should determine your default spending limit, your budget, your lifestyle. You are then forced to make spending decisions. It only takes a few months to get in the groove.
A word of caution, as your income grows, don’t let your spending grow to match it. Instead, keep your savings as a percentage of your gross income.