Efficient System for Tracking Expenses ?

[Atom]

I'd really like to know where my money is going, with as much detail and accuracy as possible (but with minimal effort). I want to do this so I can develop a reasonable working budget. Hopefully this process will reveal money that is currently being frittered away, which could be put to some better use.

My wife & I tried recording every last expense in a notebook for several months, and then tried to categorize all the expenses, but this was absolutely painful.

I've thought about a nominal allowance for each of us, to cover the little things that are too minimal to track. Most spending these days is by Visa check card, so that makes part of it easy, but we still use much cash & some checks. Tracking cash is difficult.

Anyone have a really good system?

[gberardi]

I use GnuCash to record all of my accounting information, and I have been using it for the past couple of years. Even if I spend cash, I can always list the expense.

It requires a bit of knowledge of the double-entry system of accounting, but here are a few secrets:

* Debits on the left, credits on the right.

* Assets = Liabilities + Owner's Equity.

* Assets have a normal debit balance. Increase with debits. Decrease with credits.

* Liabilities have a normal credit balance. Increase with credits. Decrease with debits.

* Equity has a normal credit balance. Increase with credits. Decrease with debits.


Those rules basically guarantee a passing grade, and possibly an A, in Accounting 101. B-)

Oh, and I don't believe a version exists for Windows, but if you use pretty much any other OS, there should be a working version.

[Doku]

I have my cash in a money clip. In that money clip is a 3x5 note card. I have it divided into sections: junk food, lunch, gas, etc. When paying with cash, I hand the cashier the cash, and either use the pen that's there to sign CC reciepts, or a pen that I have in my coat to jot down the number in the correct section of the card. At the end of the month, I get a new card. Now, all I have to do is total up each section to get my spending for the month.

[Atom]

I like the 3x5 card idea. Simple, always at hand.

I do use Windows OS, so it looks like GnuCash is out.

As far as categorizing expenses, I guess it would be better to start with fewer general categories, and break them down further only as necessary.

[drywater]

I use buddi
Buddi - Personal budget software for the rest of us
is a nice software. Its free also .
You can set your budget and expenses.

[Doku]

Another idea that I use is a simple spreadsheet. Now, don't freak out on me, listen for a sec. It's on paper... not on the computer.

Create a table in word (excel doesn't split cells correct for my liking)

14 columns, many rows. First is "Bill" second is "Total" others are Jan -> Dec
(You're probably going to want to do it in landscape format)

A set of two rows will constitute a bill.

For each bill, the name of the bill goes on top (Visa, Stu Loan, TV, Cell, ...)
The average/expected payment goes on the bottom.
Leave the second column blank.
In the second column, the first row for each "bill" gets the general due date (15th, 1st). Sort your bills by due date.
Shade each set of two rows (ie: each bill) alternating between no shading and 10% or 20% gray.

You can feel free to total up the recurring bills, and write this at the bottom of the page, or on the back, or ... so that you know what you have left to work with for non-recurring/fluctuating. Food, gas, entertainment, ... (While phone/electricity will fluctuate, it is a recurring and important bill.. put it on this page.)

Print it out.

Now, fold this piece of paper, and stick it in the box of envelopes with your checkbook and unpaid bills. Each month, around the 15th, pull out the sheet. Pay the bills that are due on the 1st. Write the date in the top row, and dollar ammount paid in the bottom row. You can later refer back and see what you paid, what day, and what month really fast. On the 1st, pay whats due on the 15th.

At the end of the year, total up each row. You can either write the total spent in the empty space in the second column (below due date), or divide by 12, and see what you spent monthly to help you improve the budget for next year. (Personally, I put the month average there)


I would post an example graphic here, but we can't post images... PM me with your e-mail address if you're interested, and I'll shoot you a graphic.

[Lucas]

Originally Posted by Atom

I like the 3x5 card idea. Simple, always at hand.

I do use Windows OS, so it looks like GnuCash is out.

As far as categorizing expenses, I guess it would be better to start with fewer general categories, and break them down further only as necessary.

Try www.dimewise.com

[nurikabe]

I'm working on figuring this out for myself as well. I've looked at tools like Dimewise, Buddi, tried Quicken (ugh, talk about software bloat!), etc., but these tools require me to physically do something in response to each and every transaction. Err, not going to happen.

Instead I opted for a simple change in the way I spend my money. I opened a separate checking account with a debit card and labeled it "Cash". I put a monthly budget into this account, say $500. Whenever possible I use the debit card; all transactions are logged. If I need cash, I only withdraw it from the Cash account. If I start approaching the limits of my budget, I (1) get really stingy and (2) try to figure out how to *raise* money if I need more.

I use Bank of America which has recently launched an automated system that, with fair accuracy, instantly classifies my transactions.

So far this works great for my ad hoc personal spending. I've done something similar with emergency medical savings via investment into an HSA (HSA Bank - National Leader in Health Savings Accounts) that allows me to use medical savings tax free. All spending is via my HSA Visa card which is also easily tracked.

Credit cards and recurring monthly expenses are another story.. still working out a system to get those under better control, though at least the recurring monthly is a known quantity.

[choconut]

I use a free online service Expense Register - Online Expense Tracking Tool

They have a feature to upload bank and credit card statements, so i don't have to enter anything manually, some budgeting tools to show you where your money is going and I like the graphs and charts!

[dmauder]

Check out Wesabe: Take Control of Your Money. It's the greatest thing since sliced bread! Totally free and it will automatically sync up your transactions - no data entry! And it works like a social bookmarking site with unlimited and very flexible tagging.

Dave