Live an Above Average life – Email #7: You need to keep score
Live an Above Average Life
You need to keep score.
Welcome to the seventh email in my July "Live an Above Average life" series. In the last email, we talked about putting your money on auto pilot. Today, we're talking about the importance of keeping score.
You know what really grinds my gears? When I think back to my former self and some of the decisions I made. Half the mistakes I made - heck, probably more than half, were due to my own ignorance. Preventable ignorance.
I didn't know myself and what was going on. Where my money was going. How I was doing (and I mean REALLY doing). I wasn't keeping score.
And when it comes to money, keeping score is a critical component. Above average people know their money. They know things like:
- Where their money is going (being spent)
- How much they have in savings (and how much is being saved)
- Monthly cash flow (money in vs. money out)
- Their overall net worth
Nobody (and I do mean nobody) achieves financial independence and especially early retirement without a keen understanding of their money situation. In detail.
That said, you don't need to be a money expert. We're not talking about picking stocks and timing the market. This is about knowing YOU. Knowing how much money you're saving relative to what you're earning. And, what you're spending those precious dollars on.
We use Personal Capital to keep track of our financial picture. It's been a game-changer in our lives, and if you aren't using it, give it a try. It's free.
If you don't know precisely where your money is at, how much you're saving and what you're spending money on every month, take the time to change that.
Start with Personal Capital.