See, this is why I secretly love tracking what I spend. It's annoying, yes, but that's not really due to the tedium--but rather being constantly exposed to one's financial self. Painful but oh so informative.
Money is tight. Work is uneasy. The economy is ailing--we haven't even begun to see some of the fallout. If 2008 was the Great Unraveling, 2009 is going to be the Great Reckoning.
For my family, the absolute top priority right now is building up the saving account we have for emergencies. How are we going to substantially increase what we save? By tracking what we spend and noticing all those spending blind spots and reining them in.
Right now, in addition to retirement, we save about $400 a month--$200 for unexpected expenses (like car and house repairs) and $200 for emergencies (like an accident or job loss). It's not nearly enough, when you consider all the hidden expenses of life. Just recently some serious cracks appeared in the exterior of our stone chimney; some rocks fell into the gutter and the garden. Chimney guy says it could cost about $2,500 to fix!
I'm convinced that we overspend on groceries and all sorts of little things--this month is when I'm going to hunt down all those excesses and kill 'em! Like some financial version of Warcraft (do I have the right game?).
So as you monitor where your money goes this month, stay in touch with your own greater goal. How are you going to use this information? What do you want to accomplish? This shouldn't be an exercise in self-torture, but plotting ways to make your life better.
Tuesday, January 6, 2009
And...We're Off!
OK, here it is, Tuesday AM and I haven't posted my spending yet for the weekend. Have I mentioned that tracking what you spend is THE Most Loathed and Dreaded Task on Earth? This is why. We are all chickens. I am a chicken. And I want to be perfect.
My plan for this entire month was to post how little I spent each day. Hah! Of course, that's when fate sends you to restaurants three times in two days, and a wee sale at the adorable kiddie clothing store in town, when you almost never (ever) eat out! Or shop! (Yes, you are watching a personal finance writer try to pass the buck to Fate. Pathetic.)
On Saturday, in a final round of holiday obligations, we spent:
$32.08 on brunch with my dad*
$19.02 on gas
$65.00 on a holiday dinner party at a new local hotspot (You know, I live in the Catskills. If someone invites you ANYWHERE, you say yes.)
$54.65 on groceries
*Please note strategic mention of parental unit, to alleviate spending guilt.
Then, yesterday, in a fit of Monday/post-holiday/deep winter blahs, I went out to lunch with a friend (and hit the kiddie store):
$19.00--lunch
$27.98--hat for DH and shirt for DS
It's only January 6, people--six days into 2009, 299 left to go--and we have wantonly frittered, lunched and brunched away a total of $217.73.
My plan for this entire month was to post how little I spent each day. Hah! Of course, that's when fate sends you to restaurants three times in two days, and a wee sale at the adorable kiddie clothing store in town, when you almost never (ever) eat out! Or shop! (Yes, you are watching a personal finance writer try to pass the buck to Fate. Pathetic.)
On Saturday, in a final round of holiday obligations, we spent:
$32.08 on brunch with my dad*
$19.02 on gas
$65.00 on a holiday dinner party at a new local hotspot (You know, I live in the Catskills. If someone invites you ANYWHERE, you say yes.)
$54.65 on groceries
*Please note strategic mention of parental unit, to alleviate spending guilt.
Then, yesterday, in a fit of Monday/post-holiday/deep winter blahs, I went out to lunch with a friend (and hit the kiddie store):
$19.00--lunch
$27.98--hat for DH and shirt for DS
It's only January 6, people--six days into 2009, 299 left to go--and we have wantonly frittered, lunched and brunched away a total of $217.73.
Friday, January 2, 2009
Ready, Set...
Step one: Why bother tracking what you spend if it's the Most Dreaded Task on Earth?
Here's my answer: Because I CAN'T BELIEVE HOW MUCH WE SPEND (we being my husband and I), and I want to cut the fat so we can save more. You may have your own reasons: Maybe you're saving toward a goal, you want to get out of debt, or maybe you just want a greater sense of financial control.
The best way to get that peace of mind is to make sure you know where your money is going and why.
NOTE: The point is not to feel guilty or ashamed! No, no, no. The point is that once you notice--Omigosh, I always get $30 cash back at the grocery and god knows where it goes--or Holy pork fried rice, Batman, who knew we got takeout for the kids 5 times a week!--you can start making more conscious choices.
Maybe takeout is smart because it saves on time and sanity. Maybe not. But until you notice your personal money quirks, it's impossible to make changes.
Step two: There are various ways to track what you spend. I encourage you to employ whatever method suits you, be it an Excel spreadsheet, an envelope in which to keep all your receipts, a notebook, your iphone--or simply posting your daily expenses here the Financial Balance blog with me.
If you hate the tedium of any sort of record-keeping--and you're comfortable with online banking--try using Mint.com, a free budgeting website that downloads your bank transactions securely.
(If you don't want to share your actual spending, you can still post your experiences this month--and I hope you will!)
Normally, I'm a pen and paper kind of gal. I've had the most success keeping an envelope in my purse where I can stow receipts; if a purchase doesn't generate a receipt, I jot it down on the envelope itself. Luckily, now I have this handy blog, so I will post my daily totals here.
I plan to track everything, including bills, groceries, gas, miscellaneous--and share my own insights as the month progresses.
Today's total: $7.75
Here's my answer: Because I CAN'T BELIEVE HOW MUCH WE SPEND (we being my husband and I), and I want to cut the fat so we can save more. You may have your own reasons: Maybe you're saving toward a goal, you want to get out of debt, or maybe you just want a greater sense of financial control.
The best way to get that peace of mind is to make sure you know where your money is going and why.
NOTE: The point is not to feel guilty or ashamed! No, no, no. The point is that once you notice--Omigosh, I always get $30 cash back at the grocery and god knows where it goes--or Holy pork fried rice, Batman, who knew we got takeout for the kids 5 times a week!--you can start making more conscious choices.
Maybe takeout is smart because it saves on time and sanity. Maybe not. But until you notice your personal money quirks, it's impossible to make changes.
Step two: There are various ways to track what you spend. I encourage you to employ whatever method suits you, be it an Excel spreadsheet, an envelope in which to keep all your receipts, a notebook, your iphone--or simply posting your daily expenses here the Financial Balance blog with me.
If you hate the tedium of any sort of record-keeping--and you're comfortable with online banking--try using Mint.com, a free budgeting website that downloads your bank transactions securely.
(If you don't want to share your actual spending, you can still post your experiences this month--and I hope you will!)
Normally, I'm a pen and paper kind of gal. I've had the most success keeping an envelope in my purse where I can stow receipts; if a purchase doesn't generate a receipt, I jot it down on the envelope itself. Luckily, now I have this handy blog, so I will post my daily totals here.
I plan to track everything, including bills, groceries, gas, miscellaneous--and share my own insights as the month progresses.
Today's total: $7.75
Friday, December 19, 2008
Welcome to Financial Balance!
Finally, it's 2009. Phew! Wipe the dust of 2008 off your feet here, and let's step into a whole new year.
Starting on January 1, I'll be tracking my expenses--yes, my actual personal and household spending (which includes one husband, a two-year-old, two cats and moi)--in order to get a better grip on where all our money goes.
Where does it go? There are so many ways to ask that question: Where does it GO??? Where DOES it go? WHERE does it all go, for pete's sake?
The only way to find out for sure, and learn all kinds of fun things about yourself and your money that you didn't anticipate, is to monitor what you spend for a week or two or four.
Little-known fact: Tracking spending remains The Most Loathed Task On Earth!!!! Thus making it even cooler that we're doing it together. Right? Stick with me and I'll help you clean out the garage this spring. (That would be Most Loathed Task #2.)
Starting on January 1, I'll be tracking my expenses--yes, my actual personal and household spending (which includes one husband, a two-year-old, two cats and moi)--in order to get a better grip on where all our money goes.
Where does it go? There are so many ways to ask that question: Where does it GO??? Where DOES it go? WHERE does it all go, for pete's sake?
The only way to find out for sure, and learn all kinds of fun things about yourself and your money that you didn't anticipate, is to monitor what you spend for a week or two or four.
Little-known fact: Tracking spending remains The Most Loathed Task On Earth!!!! Thus making it even cooler that we're doing it together. Right? Stick with me and I'll help you clean out the garage this spring. (That would be Most Loathed Task #2.)
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