4 Reasons Why You Need A Money Journal

“Dear Diary,

Today, I spent money again…”

In my humble opinion, which is based on no facts whatsoever, I think that the worse the economy gets, the more people spend their money. This is either because they’re scared things will get more expensive with time or that there’s no point in saving because it’s all downhill from here! Nonetheless, this greatly damages your finances—I should know! One thing to keep the boat afloat is by having a money journal!

What's a money journal?

A money journal or diary is exactly what the name entails! A place where you keep a record of all your purchases, savings, investments, debt, and so on! You don’t have to keep your records in a physical notebook, this isn’t the Dark Ages! You can use a personal finance app or even your notes which I don’t necessarily recommend! Having a money journal could have a positive impact on your overall finance and mental health!

1. Budgeting

It’s not a brainer, but keeping track of your financial records will help you in creating a budget if you’re struggling with where to save and spend. At the end of each month, you can review whether you overspend or underspent and create a healthy budget.

2. Accountability

You know how some people can’t diet on their own and have to see a dietitian to keep track? Well, a money journal is your dietitian. It will judge you and hold you accountable for all the unnecessary and irrational spending habits.

3. Goals

A money journal is also like having two angels by your side. One will reprimand you and hold you accountable. The other will applaud you when you plan and reach your financial goals. But it’s not just for the little goals. Managed to pay off 1% of your debt? Treated yourself with a well-deserved dinner? Enrolled in a new course? All these things are wins, and a journal will show you all the little wins that we tend to forget.

4. Stress-free zone

Journaling is an excellent type of meditation. I love a working brain as much as the next guy, but sometimes you just need to completely zone out without having to watch Minions for the bazillion time! Journaling is the way to go. It has a healing effect. You’ll be less stressed not depressed. But in order to make it so, you should remember not to focus on the bad things only. If you only turn to your journal to record your spending and loss, this won’t help you financially or mentally. Remember to make it an inclusive journey of the highs and lows of personal finance!

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