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What are concrete things you can do with the energy you have to start the new year off right? Here are five things that will start a flywheel of productivity for your wealth.
You improve what you measure. When a business wants to improve sales, you better believe management is looking at key sales metrics every week like number of prospect meetings, number of signed contracts and the like. You should be doing the same with your finances. How will you cut down your partying budget when you don’t even know how much you spent last month vs this month?
Making this data as simple and easy to access is the key to effective change. You should be able to see this info anywhere, in real-time, with no manual work on your end. Fortunately there are a ton of free and low-cost tools that allow you to do this. The one I use is a free service called Personal Capital. I’ve tried other major vendors like Mint and Quicken and have found that Personal Capital has the best dashboard with easy zoom-in features and ability to cut the data in different ways. You hook up all your accounts and get a bird’s eye view of everything in your financial life.
Expenses: On the expense side, you can see everything from how much you spent in the month vs last month, how much of that was restaurants vs health (all auto-classified), to sorting all of the month’s expenses by amount so you can see where your big splurges were. I also like to use their dashboard