"Keep track of every cent that comes into or goes out of your life."
-- Your Money or Your Life
I have been doing this system since September 2012,and I'm loving it! It feels like I'm a natural tracker!
There is no right or wrong way to do this . There is no special notebook to buy or an app to download. You can use a pocket-sized memo book or any computer accounting programs. You can be creative and do things your own way just as long as you record every cent that enters, leaves and the reason for its entering or leaving everyday. Whatever works for you.
Every cent??!! Every penny ??!! Every centavo ??!! Every peso ??!! No guestimation?!
As what I said earlier, I have been doing this for quiet a while now and I've been enjoying it. I like the feeling of control and satisfaction that I know how much I have and how much I am spending every day. I don't intend on doing this system forever but this definitely fills up my time as I anticipate the day that I will be going home for good. It has become my second nature to carry around a piece of paper in my wallet wherever I go and list every time I spend or receive money and the reason for the exchange. At the end of the day, I transfer it in a notebook.
|Daily Money Log Sample|
Above is how I've been doing the Daily Money Log.
- I color coded it.
- I put the date along with the day
- Wrote IN and OUT
- I am also detailed with what is the reason for the IN and OUT. Example McDonald's (Fries and Burger)
- I also count in the Coins Found
- Under the Grocery is a Breakout of all the things I bought there with its corresponding price (it doesn't need to be accurate) and the Total below OUT.
- I chose not to write the days when I don't spend or receive any money.
It might look tedious and time-consuming but ,I think, it's the best way to become conscious on how money comes and goes in your life. It has been 10 months since I started this system and you might ask me if it's worth the trouble. I'd say YES, it's all worth it! Besides, according to the book The Millionaire Next Door, people who have high net worth relative to income knows how much they are spending on clothes, travel,housing, transportation etc., and those who don't achieve high net worth relative to income have no idea how much they spend.
Get into the habit of tracking every cent that comes and goes in your life.