This is something that I have been doing since last year (2011) and I can say that it has helped me a lot in terms of saving up and knowing where my hard-earned money goes. The first time I began to track my spending it showed me what I thought was important. And it was such a huge eye-opener.
I now carry around a little organizer/notebook where I record each and every purchase I make. If I pay for an 80php cup of coffee I write it down. If I pay for a 500php t-shirt I write it down. If I can’t open my notebook after buying something, what I do is take note of it on my smartphone by using the Notes app, save the receipts and then I transfer it to my notebook at the end of the day. At first this seemed very tedious but the process becomes automatic after a very short time. This procedure is the number one way I know of to get you very acquainted with your financial habits so you can also begin taking control.
Being truthful – in a gentle, caring way – is one of the easiest ways to simplify your life. Think of Shakespeare’s classic phrase: “Oh what a tangled web we weave.” What this means is that when we are not truthful, we need to spend a lot of energy trying to remember what we said to whom. Think about the stress involved when you lied to someone and didn’t tell them the truth; instead you concocted a whole new story. How simple your life would be if you did not operate a dual life.
If you want to lead a truly fulfilling life, then you may need to start by rethinking what constitutes success. Traditionally in our culture, success has always meant driving a brand new or a late-model luxury car, carrying around numerous credit cards, wearing designer or branded clothing and jewelries, and living in a big fancy house.