Why Tracking Your Finance Can Be a Bad Idea
You may love to organize your financial documents. In fact, you take a step further into categorizing them by different coloured folders. There is even a special cabinet at home just for financial documents! You might even carry a notepad and a pen wherever you go just to keep track of every single thing you spend on. Best of all, you can and balance your chequebook regularly.
While this financial habit of tracking is great and should be applauded, it can be the ultimate time waster. It can easily take up 7 hours of your time a month, just to analyze where you spend. In a year, you might find an error which amounts up to $100. That 7 hours a month totaled up to 84 hours a year. In that one year, 84 hours were spent just to uncover a $100 financial error made by the bank. That is like $1.19 wage an hour for the meticulous tracking every month. You could have used up that time for work and do something productive.
The problem is time. Time waits for no man and is limited. Financial administration is indeed important, but do not sweat the details until it takes over your life. Tasks like these are mundane and should be dealt with minimum amount of time. A good tip is to reduce spending at the first place. If you spend less, there is less to track. Ultimately, you have more free time for yourself, instead of harvesting lots of time into financial paper work.