How many people account for every penny?

john_s_2

I have a spreadsheet on which I track every penny that goes in and out the joint account. Various headings on it for various budgets that aren't regular monthly payments (such as groceries, kids' birthdays, 'misc').

I used to keep an equal track of my own personal account (into which we pay 'pocket money' out of the joint account - the same amount goes into my wife's personal account) but now I bank online I can check any payments I've made out of that. I don't worry too much what I've spent my own 'pocket money' on. If I run out I run out. (And borrow it out the joint - yes, there's two running totals on the spreadsheet showing how much we both owe the joint account. I won't embarras my wife by saying how much those figures are ;-)

Networkguy

Don't under estimate how powerful this can be.

When I was younger (around 1994) I was a financial mess. CCJs, late rent, huge overdrafts, zero credit rating. You get the idea. I got to the point where my bank actually closed my current account saying they no longer wanted my business! NOT GOOD

Some of this was down to me being slack with money, spending what I did not have and not allowing for direct debits etc. If the cash machine would let me have cash, I would withdraw it.

I then started to use Quicken (a PC based money program) that allowed me to track all my finances (or lack of them) and slowly I started to get on top of things.

Sure it took a lot of hard work and a number of years but the one thing software like this does is show you at a glance how much money you will have left the day before pay day after taking into account all known payments such as direct debits.. Knowing this helps you work out how much money you really have left to spend.

Here we are 14 year later and even though the only debt I now have is my mortgage and my car lease and I am able to pay off my credit cards in full each month, I still manage all my finances in this manner. These days I use Microsoft Money but the software is not important.

Understanding your finances on a day by day basis is a very powerful thing and can really put you back in control. So you might need to put aside 10 minutes every couple of days (do it whilst you are waiting for your email to download) but trust me, those 10 minutes are probably one of the best invesments you can possibly make.

abbecer

I don't but should do.

Rebecca

P.S note to self. Get a$$ into gear and sort it!!

Addison07

I too have a spreadsheet and account for everything. With DD's coming out at all different points in the month and a very tight budget I need to make sure I have the right amount of money left in my account at all times of the month. I have been doing this for a few years now after amounting quite a few bank charges due to unpaid DD's etc (which I claimed back now) Its a life saver and I am really anal about it, my work mates think im nuts as the end of every month when we get paid I spend my lunch hour sorting my spreadsheet

johnaspley

bandraboy wrote: »

I just wondered how many people on MSE account for every penny. I don't mean in your bank account or an SOA (current state of affairs) but seperately on spreadsheet or financial software, updating daily.

I've just completed my first week of accounting for every penny and it's been great. So easy to see all the things you've almost forgotten you've spent. And where the money goes - tipping people, just how much I do eat out, and toiletries I already have.

So I just wondered who would get the award for being the most anal - er I mean diligent?:rotfl:

What do you do? Any tips?

I decided to try to keep a closer eye on things when I started my last job last October. I kept all my receipts and at the end of the month 'did my accounts' to make sure everything added up. It last for... one month! It's a very long process and as someone who checks their internet banking every day... wasn't really necessary. I keep a close eye on day-to-day transaction on my internet banking so it was a bit unnecessary.

Networkguy

johnaspley wrote: »

I kept all my receipts and at the end of the month 'did my accounts' to make sure everything added up.

I think this is where a lot of people fail.

If you keep your receipts to the end of the month, then it becomes a big job.

All you need to do is track your bank account against known direct debits etc on a regular (every couple of days) basis. You don't need to hoard receipts as these will just confirm what your online bank statement shows you anyway.

savingforoz

I second Moneydance as being a fab piece of software, and for those ewanting to track cash it's perfectly capable of that.

zekepes

DH has used ms money for ages to take care of our accounts but he didn't account for every penny. Every couple of days he checks our bank account online and enters the transactions.

I have just installed a copy on my computer and I am tracking every penny of spending that we have a decision over (so not regular bills) on a daily basis.

I have a simple calendar on the fridge where we notes down cash spending and I then transfer that and all the info off receipts onto ms money.

The reason I have started doing this is because it all seemed too vague. We were somehow getting through nearly £1900 each month excluding all regular payments and contributions. DH said it was mainly in the supermarket (blaming me) but I knew I was getting cashback that often found its way into his wallet and then down the pub/ snacks when out on business. I wanted to know exactly how much I was spending on food (groceries), alcohol, nights out, babysitting, cleaning stuff, toiletries, stationary, clothes, presents etc

I am enjoying it at the moment and I am really looking forward to seeing where all this cash is going at the end of the month. I was going to do it for just a month but really that isn't enough to get a proper idea of budget. Hopefully, we will be able to make bigger payments on the mortgage very soon (as I think being accountable will naturally curb wasteful spending) and in a few months have a much clearer idea of where we are spending and set ourselves a proper budget in each area.

I also think it is good that we are both doing it but differently (and not interferring with each others!) - so it is just a quick job for both of us every day or so. He takes care of the 'big picture' and I take care of the 'detail'.

pollyanna24

I have spreadsheets for this and I am terribly anal about it, but it works for me. I had a simple version until October 2006, when bf let me take over all the major finances. He would never have money for stuff like car insurance and would stick it on a credit card. Now he doesn't have to worry about anything like that as I have managed it all.

I use Open Office. Probably not the best, but it was free and worked for me at the time of setting up the spreadsheets. I reckon I have spent hours and hours setting them up, but now that they are there, they don't take that long. It helps that I have a boring office job and spend most of my time just staring at the computer screen!

I have a file for each month and then that is split up into:-
Bills - this lists incomings and outgoing, so I know what should be left at the end of each month. Included are non monthly sections where I set aside a figure in a separate account for things like car insurance, car tax, pet vaccinations, dentist etc.

Groceries - I list each and every separate thing we buy. Sad, but there you go. I know exactly how many pints of milk I bought in October 2006 and from then on and how much we spent on it! Told you I have too much time at work. I do most of the shopping, but if bf buys anything, he knows better than to throw away any receipts now!

Extras - inevitably there are extras, but I like to know where the money goes.

My personal money - I count this as a bill. And I break down my money so I know what I spent. Bf's also counts as a bill, but he does what he likes with his personal money. We needed personal money as he is a bit parp with money and this way he has some of his own to blow if he feels like it.

Savings - because of all the spreadsheets, both of us working and having some lodgers for a while, this looks quite healthy at the moment.

Day to day - This is so I know exactly what's happening on a day to day basis. If something is bought on card, I put it down as "to come out" so that there are no nasty surprises.

I also have a mortgage spreadsheet. I know exactly how much we will be owing at the end of our 5 year fix, and update it if ever we are able to overpay.

There is also a dinner spreadsheet. Helps to meal plan if I can't think what to cook.

Bf thinks I'm mad and stays completely out of it. But if ever he wants to know anything or how much we have, all he has to do is ask. Think he likes the hasslefreeness of it for him. As long as our savings are going up and he has money to spend, he's happy.

student100

As mentioned in another thread, I use Personal Accounts 5 software to record all spending down to the 'withdrawing cash' level - e.g. I'll record a £30 ATM withdrawal but not normally what it was spent on (I normally only spend cash occasionally on things like lunch at work (infrequently), drinks on a night out, bus fares, parking (infrequently) etc) - I have an account 'cash' and budget for a certain amount of cash spending each year. Other things paid by card I will record the amount to a relevant account e.g. Tesco goes to 'groceries' which includes all food and household bits etc, I have accounts for fuel, car maintenance, household bills, mobile phone, rent, travel, holiday etc.

I've also started tracking some of my more significant 'fixed assets' (car and some expensive 'toys') and booking depreciation as a cost so I can more accurately work out what I'm 'worth' and what things are costing me.