Keeping Track: The Basics

There are several ways you can keep track of your money. Some use the envelope system, some use programs like Excel, and some use pen and paper. Use what works for you. I was told to just stick it in the bank and don't take it out unless I need it. Well that only turned into......I NEED this or I NEED that! It didn't exactly teach me the concept of budgeting, and getting a job didn't teach me the value of a dollar either. Try to ditch those cliches.

We personally use Excel, but it can be a challenge for those that don't know how to utilize the formulas neccesary to make it easy. However there are plenty of how-to videos on the web if your interested. I got lucky in that my husband did all that. ;) He was using Excel to do his budget before I met him, and then he later showed me how to do it. It was the best thing ever!

You need to know how much you have and what its purpose is. Money has to have a purpose. If we all worked for fun we would most likely be volunteering. How many times have you gotten an income tax refund, or a bonus, or your pay check and a few days later you are scratching your head wondering where it all went?

Keeping a budget, however you choose to do it, forces you to take responsibility for your money. Writing it down or typing it in allows you to see exactly where it goes.  This is where will power comes in. You have to keep up with your receipts AND log them. The best practice is to do it every day at the end of the day.