Tracking Your Finances

Tracking Your Finances

Strategies for More Accurate Personal Bookkeeping

No business would survive if they did not track their income and expenses. And elected officials who tried to spend public funds without a budget would quickly be out of a job. Yet, when it comes to our personal lives, it's easy to be lax about financial bookkeeping.

Tracking your finances can help you to recognize your positive and negative habits, and make smarter financial choices moving forward. Below, you will find three highly effective strategies that can help you accomplish exactly that.

  • 1. Pay With Cash. Yes, cards do offer the advantage of generating automated statements provided by your bank ‐‐ but if you are serious about tracking your personal finances, paying in cash can inspire greater focus. There's something that's just too easy about swiping plastic! When you hand over the cold hard cash that you've worked so hard to earn, you'll find yourself thinking hard about the pros and cons of every purchase.

  • 2. Use a Bookkeeping Software or App. This could be as simple as filling out an Excel sheet. However, there are also a myriad of highly effective and affordable solutions such as QuickBooks that can accomplish bookkeeping tasks in an easy and intuitive manner, as well. In the end, whether or not you practice personal bookkeeping is more important than how you do it.

  • 3. Keep Your Receipts. We'll be the first to admit: If you are not used to doing this, saving your receipts can be a frustrating task. However, like paying in cash, keeping your receipts is a good way of making your expenses feel more "real." Moreover, anyone who has reason to expect reimbursement from their employer or on their taxes should get into the habit of storing receipts automatically.

For more personal finance tips and assistance, visit Madison Monroe and Associates online today!

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