Being an employee is
relatively hard. That is why we always find a way to reward ourselves every now
and then. While that is not bad at all, we often go overboard. What do I mean
by this one? We tend to spend more than our salary’s worth.
You’ve already calculated your net worth as suggested by
the 4th Part of this series. That
would bring you a hefty generalization as to where you are right now with
regards to your money. More than knowing your cash, you also get to tap your
varied assets. And the most important thing is you get to know the things that
you still owe.
That is why in this part of the Becoming the Rich Employee Series, I am
sharing with you how to keep your finances in control. And the first phase is
called TLC. This is quite close to Tender Loving Care but with regards to money
this is shifted to Track and Listen to your Cash.
The concept of TLC (Track and Listen to your Cash) is to fully understand where
your salary and money is going. The reason behind the idea is to know where
most of it goes. I am most certain that you have encountered many times where
you just got your salary and after a few hours you suddenly question why you
are only left with such amount. Then you wonder where did all the money go?
If you find yourself in such situations, then it would be best to implement
TLC. With this method you will also be able to identify what eats up most of
your cash. TLC is divided into two parts. The first part is Track and the
second part is Listen.
Let us dissect.
Track Your Cash
In any personal finance aspect, tracking your cash is very important. This will
tell you where your money goes. Plus, it is also a realization if you are just
starting to sort out your finances on the things you tend to spend most. This
will give you a detailed view on how you would normally spend your money. As
such, upon knowing the details, you will then be able to alter it and change it
for the betterment of your money. Then you can be able to build up your budget
from there. Tracking your cash is not hard. You just need a little notebook
where you can write your expenses on a daily basis. If that is something you
are not accustomed with, you can always use your smartphone for such. Simply
use your memo application that is already pre-installed. In order to get a glimpse
of your financial situation, it would be best to track your cash for a month to
two. This will really give you a clear idea and direction where your money
goes.
Listen To Your Cash
Please don’t take this literally. You would look funny if you move your cash
close to your ear in the hopes to understand what it is saying to you. Just
thinking about it makes me laugh so hard. Setting the joke aside, listening to
your cash is simply identifying where your cash would like to go. This will
give you a glimpse of the things you might want to get and have in which your
cash or your salary can be useful. From there, you can draw the line if such
would be a need or a want. Of course since we are employees, we would want to
indulge from time to time. And being able to listen to where your money would
go would give you a direction where. From there you can be able to pre-empt any
impulse buying since you already sorted if that thing in your head would be a
necessity or otherwise.
TLC is very important most especially if you would want to establish
relationship with your money. The thing where most employees fail to realize is
to claim their salary on a more personal level. You see, when you get to
understand your money and your cash, you would be hesitant to squander and more
so spend it unnecessary expenses. Let this be a lifelong assignment. Track your
Cash and Listen to it.
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