Money for Life Applied Principle #8 – Implement the Success Cycle. Step 2: Track.
The success Cycle is made up of four basic steps: Plan, Track, Compare and Adjust. Step 2 is to track every transaction.
“Once you have completed a monthly plan, you need to begin tracking your progress. Companies spend billions annually tracking every transaction, including sales, expenses, and cash receipts. Imagine trying to successfully manage a company without using and applying accounting principles. Some try, but largely they either have low levels of success or fail. This should not be surprising. Why then do so many try to achieve personal financial success without tracking their income and expenses?”
“Companies don’t choose which transactions to track-they track every transaction. The only way to get the complete value from tracking is to track every Transaction. If you want to become financially fit, you must be prepared to carefully follow this principle. Tracking every transaction can seem overwhelming at first, but with the right tools, this can be very simple.”
With the Mvelopes application you can track all of your transaction automatically. The transactions will download each day from your financial institution and you can track exactly where your money is going.
Contains excerpts from Applied Principle 8, Money for Life, by Steven B Smith