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Why do you really need to track your expenses?

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Why do yo really need to track your expenses? It is common that we all want to reduce our expenses while increasing our income. However we all have got used to do all our expenses at ease, then look back on our expenses and continuously worry about the amount that we spent. This has been a continuous cycle for generations. Most of the people wanted to come out of this vicious cycle, but could not identify the crucial step for the purpose. As we all know, prevention is always better than cure. Similarly for the expenses, the key to control your expenses is planning your expenses before you spend. But the most common issue which I could observe is people kickstart tracking their expenses with these kind of external motivations and give up within few days. The tracking of expenses or recording how did your money went out is important in planning your finances. The expense track would eventually tell you the exact reasons for which you spent your last 10 bucks. Simply, the record of expens

Do your really think your house as an Asset? Answer reveals your financial status

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Is your House really an Asset? Well, a house is a major achievement of a person's life. People often believe that spending on a house is a wise investment. But is it? really? Considering the patterns of cashflows and valuation there are several explanations which are conflicting. Generally accounting academics teaches that an asset is something which we invest money on the very physical or intangible thing causes a value or provide a service on the investor. Similarly, accounting states that cars, lands, houses, apartments, tools and equipment are assets for the owner. But, Robert Kiyosaki forwards a totally different view on this theoretical concept. The author highlights the huge sum of expenses incur since the day we plan building our own dream house. He states in his book, "Rich dad and Poor Dad" knowing that we are accepting a whole sum of the future expenses with the plan of building the dream house, Your house is nothing but a huge liability upon your earnings.  Th