Becoming the Rich Employee Series (Part 5)

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Being an employee is relatively hard. That is why we always find a way to reward ourselves every now and then. While that is not bad at all, we often go overboard. What do I mean by this one? We tend to spend more than our salary’s worth.

You’ve already calculated your net worth as suggested by the 4th Part of this series. That would bring you a hefty generalization as to where you are right now with regards to your money. More than knowing your cash, you also get to tap your varied assets. And the most important thing is you get to know the things that you still owe.

That is why in this part of the Becoming the Rich Employee Series, I am sharing with you how to keep your finances in control. And the first phase is called TLC. This is quite close to Tender Loving Care but with regards to money this is shifted to Track and Listen to your Cash.

The concept of TLC (Track and Listen to your Cash) is to fully understand where your salary and money is going. The reason behind the idea is to know where most of it goes. I am most certain that you have encountered many times where you just got your salary and after a few hours you suddenly question why you are only left with such amount. Then you wonder where did all the money go?

If you find yourself in such situations, then it would be best to implement TLC. With this method you will also be able to identify what eats up most of your cash. TLC is divided into two parts. The first part is Track and the second part is Listen.

Let us dissect.

Track Your Cash

In any personal finance aspect, tracking your cash is very important. This will tell you where your money goes. Plus, it is also a realization if you are just starting to sort out your finances on the things you tend to spend most. This will give you a detailed view on how you would normally spend your money. As such, upon knowing the details, you will then be able to alter it and change it for the betterment of your money. Then you can be able to build up your budget from there. Tracking your cash is not hard. You just need a little notebook where you can write your expenses on a daily basis. If that is something you are not accustomed with, you can always use your smartphone for such. Simply use your memo application that is already pre-installed. In order to get a glimpse of your financial situation, it would be best to track your cash for a month to two. This will really give you a clear idea and direction where your money goes.

Listen To Your Cash

Please don’t take this literally. You would look funny if you move your cash close to your ear in the hopes to understand what it is saying to you. Just thinking about it makes me laugh so hard. Setting the joke aside, listening to your cash is simply identifying where your cash would like to go. This will give you a glimpse of the things you might want to get and have in which your cash or your salary can be useful. From there, you can draw the line if such would be a need or a want. Of course since we are employees, we would want to indulge from time to time. And being able to listen to where your money would go would give you a direction where. From there you can be able to pre-empt any impulse buying since you already sorted if that thing in your head would be a necessity or otherwise.

TLC is very important most especially if you would want to establish relationship with your money. The thing where most employees fail to realize is to claim their salary on a more personal level. You see, when you get to understand your money and your cash, you would be hesitant to squander and more so spend it unnecessary expenses. Let this be a lifelong assignment. Track your Cash and Listen to it.

P.S. My very first e-book is finally here. You can buy it using the Buy Now button at the right or via bank deposit. Only Php 150.00. Purchase your copy now.

P.P.S To those doing the 52 Week Money Challenge, it is Week 46 already! Did you deposit the next amount yet?

P.P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too. 

P.P.P.P.S I am also sharing my stock market secrets and information via these resources