Why is the habit of planning and tracking your spending so important?

Question

CHOOSE 2

It helps you reduce your credit score

It helps you find ways to save money

It helps you decide and prioritise how you spend and save your money

It helps you increase your income

Answer 1

The habit of planning and tracking your spending is important because:

1. **It helps you find ways to save money**: By monitoring your expenditures, you can identify areas where you might be overspending and make adjustments to save more effectively.

2. **It helps you decide and prioritize how you spend and save your money**: Planning and tracking your spending allows you to allocate your resources better, ensuring that you are spending money on what truly matters and saving for future goals.