The number one rule of wealth management is “Know where your money is going.” Don’t look it up, it’s an unwritten rule.
Everybody knows how much money is coming in every month. They just have to look at their paychecks. But not everybody knows where all of that money is going. Sure, they know about the big bills: rent/mortgage, student loan, car payment, utilities, phone, etc., but many don’t remember at the end of the month what they spent at the beginning of the month.
This causes them to always ask, “Where the hell did my money go?”
I certainly was one of these people. Every month I used to ask myself the same two questions. The question above and “What did I buy this month?”
I was really fed up with that routine so I decided to write down every single expense I made… I mean EVERYTHING. After a month I looked back at my spending and was able to figure out where my money was really going.