Ringing in the New Year often means day one on your path to financial success. In fact, a recent study found that 30% of British adults have money resolutions for the 2024 new year. Unfortunately, only 1/3 of people are actually successful in reaching their New Year’s resolutions.
The good news is that you can set yourself up for financial success with shift tracking. In this article, we’ll cover the basics of shift tracking, including its importance and how this tool can help you reach your financial goals in the next year.
What is Shift Tracking?
Shift tracking is the process of tracking the hours worked at your job. This information allows you to project your expected income, giving you more insights to plan out your expenses, savings, and more. You no longer have to wait until payday to see if you are on track to reach your goals for the month. Instead, you have access to this information daily, allowing you to remain agile and flexible in your financial goals.
Furthermore, shift tracking is commonly completed by employees who are paid by the hour, as your pay can vary from week to week. Your employer might have a timeclock app that you utilize, but it can be beneficial to use your own shift tracking software that allows you to forecast your earnings and where you are at with your financial goals. Most employer-provided tools are limited to punching in and out.
Why is Shift Tracking Important?
Shift tracking offers a variety of benefits when it comes to reaching your financial goals. For one, shift tracking reduces financial stress surrounding income and bills. When you know exactly what your paycheck will be, you have the ability to properly plan out your expenses. For example, let’s say that you worked three hours less than you planned. As a result, you might need to defer a bill until next week. This can prevent you from overdrafting and reduce stress surrounding your finances.
Additionally, shift tracking ensures you aren’t being underpaid for the hours you work. Payroll can make mistakes, from transposing a number to pulling the wrong data. Shift tracking allows you to compare the hours on your paycheck to the hours you actually worked. You work hard for your money. With shift tracking, you can guarantee that you are being properly compensated for the time you spend working.
Reaching Your Financial Goals with Shift Tracking
Financial goals can feel overwhelming, whether you are trying to pay down debt, save for a house downpayment, or just make ends meet. This is why it’s important to have the right resources on your side. Here’s a five-step process to reaching your financial goals with shift tracking.
- Clock In and Out – First, you want to be sure you are properly tracking each shift. At the start of your shift, punch in. Then, when you leave work, punch out. Throughout your shift, you might have breaks. Any unpaid breaks should be reflected in your shift tracking program to increase accuracy.
- Project Pay – With data entered into your app and a rough idea of how many more hours you will be working during the week, project your pay. You can apply a rough estimate for taxes and deductions, such as a 25% tax rate.
- Make Adjustments – Based on your projected pay, do you need to adjust your budget, goals, or spending? Maybe you worked an extra hour so you treat yourself to takeout or put away extra funds into an emergency account. Knowing where you’re at helps you plan.
- Compare Pay – Once your paycheck does come, compare the information from your shift tracking app to your pay stub. Are there any discrepancies that need to be discussed with your employer?
- Look at the Big Picture - When it comes to evaluating your shift tracking information, take both a macro and micro view. This means analyzing your pay weekly, but also monthly and yearly and how it compares to your goals. Are you on track to reach your goals or should you pick up some extra shifts?
This five-step process is a great way to get started on your path to financial success. Take it one shift at a time and use shift tracking as your resource to fall back on when times get tough.
Getting Started with Shift Tracking
Are you ready to leverage the benefits of shift tracking? Reaching your financial goals can feel daunting. Utilizing the right resources, like shift tracking with Shillings, can help ease this burden and put you on the fast track to success. For more useful information to help make your earnings go that little further, subscribe to our updates below.
Sources https://www.finder.com/uk/new-years-resolution-statistics