Track Expenses and Create a Personal Balance Sheet

Want to know the difference between people who build wealth and people who don’t?

It’s not income. Plenty of high earners are broke.

It’s visibility. Knowing exactly where you stand, where your money goes, and what you’re worth.

💡 Here’s how to get it.

💵 Step 1: Know Your Income

Start with what’s coming in:

• 💵 Primary job salary (after tax)
• 🛠️ Side hustle income
• 📈 Investment returns (dividends, interest)
• 🏠 Rental income
• 💰 Any other cash flow

Total it up. This is your monthly fuel.

📊 Step 2: Track Your Expenses

Now for the harder part — where does it all go?

Track everything for at least one month:

• Fixed costs (rent, utilities, subscriptions)
• Variable costs (groceries, transport, entertainment)
• The sneaky stuff (coffees, UberEats, impulse buys)

Tools that help:

• 💻 Budgeting apps (YNAB, Frollo, Pocketbook)
• 📊 Spreadsheets (full control, bit more effort)
• 🏦 Bank transaction exports (most banks let you download these)

The goal isn’t judgement — it’s awareness.

📝 Step 3: Create a Simple Budget

With income and expenses mapped, build a plan:

1. Allocate money to categories
2. Set limits for discretionary spending
3. Prioritise savings/debt repayment
4. Leave room for life (budgets that are too tight break)

✅ Review monthly. Adjust as needed. Life changes, budgets should too.

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📈 Level Up: Your Personal Balance Sheet

A budget shows cash flow. A balance sheet shows net worth.

It’s a financial snapshot: what you own minus what you owe.

Assets (What You Own)

Asset	Value
Cash/savings accounts	$_____
Investments (shares, ETFs)	$_____
Superannuation	$_____
Property equity	$_____
Other assets	$_____
Total Assets	$_____

Liabilities (What You Owe)

Liability	Amount
Mortgage	$_____
Credit cards	$_____
Student loans	$_____
Car loans	$_____
Other debts	$_____
Total Liabilities	$_____

Net Worth

Total Assets - Total Liabilities = Net Worth

📈 This number might be negative (especially when young). That’s okay. The point is to grow it over time.

💡 Why This Matters

When you track expenses and net worth, you:

• ⚠️ Catch problems early (spending creep, debt growth)
• 🧠 Make better decisions (data > feelings)
• 🎯 See progress (motivation to keep going)
• 📝 Set meaningful goals (based on reality, not fantasy)

🔑 Make It a Habit

• 📅 Weekly: 5 minutes logging expenses
• 📅 Monthly: 15 minutes reviewing budget vs actual
• 📅 Quarterly: 30 minutes updating your balance sheet

It’s not glamorous. But it’s the foundation of financial success.

🏁 The Takeaway

🔑 Tracking money isn’t about restriction — it’s about clarity.

When you know where you are, you can chart a course to where you want to be.

Start this week:

1. Track every expense for 7 days
2. Calculate your current net worth
3. Build from there

Related guides:

• Create a household budget
• Basic portfolio management
• Essential personal finance skills

Your future wealthy self will look back at this moment as the turning point. 💪💰