Weekly Thoughts 06 February 2015

I thought to write something about the boring matter of trying to manage our personal spending, trying to track where our money goes – monthly budgeting.

Unless you earn sufficient to be able to spend relatively freely, this means paying the regular expenses, eating that extra pizza whenever you feel like it, being able to cope with buying two new tyres in any given month, saving 20% of your income and all the while not running up credit card debt, plus ending the month with extra money, then it would be a wise thing to do. I find it a time consuming task, with no way round it. So a few tips and thoughts below.

Spending as much as possible only through recordable banking processes such as your bank account, credit card, garage card etc, allows you to go online and see where the money has gone. But its where all the cash went that you drew from the ATM which can be a problem. Try to always get a till slip for cash given out. Thereafter, try each day to make a note of cash given out where there is no till slip.

Then you need to take all this information and be recording it somewhere. This could be a simple listing system on a spreadsheet. You will then see what you’re spending and slowly develop a forward planning budget, which is part of the objective. I have slowly developed such a spreadsheet system, but I find you have to go to it often, almost daily, and then it doesn’t take that much time. If you wish to plan how you’re going to buy that car of your dreams or get to Croatia on holiday, then try it.