-Written by Cel
Once a month, I write an entry in what we call our “retirement journal”, or financial journal if you are not yet looking towards retirement.
For me, the first sentence is always how much money I saved that month and what my total net worth is. I talk about a few key subjects – any big expenses in that month, new financial developments (opening an investment account, getting a new credit card), other developments that indirectly impact my finances (last year I bought a bike, which lowered transit expenses), the balances of all my accounts, and my passive income (this is very important to me, as my main goal is getting my passive income high enough to cover living expenses). I also speculate as to whether the next month will be good or bad, financially.
You could use it however you like – you may want to use it set financial goals, like not eating out during work lunches for the next month. Then, during next month’s entry you can talk about how well you succeeded and what your observations were.
I find it really interesting looking back and seeing my net worth increase over time, reading about the process of opening my first investment account, seeing when we cut our landline, and things like that.
Give it a try – you may find it helps you get control of your finances!