No Technology Finance Managing

A conversation with a blog visitor helped remind me that not all people track their expenses using a computer or finance program.  I’ve used Quicken for over 12 years to help manage our money.  There have been times where I briefly used the paper route way and I’ve taught how to manage finances without using technology.  It’s not worse than tracking on a computer – just different.  There are pros and cons to both systems. 

1.  To track expenses the paper way, get a notebook or accounting ledger. 

2.  Make a list of your categories/expense accounts and write each one on the top of a separate page.

3.  Every time you spend money (cash, credit, check), enter the date and amount spent under the category it reflects.  For instance, if you buy milk and bread ($8), then list on the category page “Grocery” the date you spent the money and the amount.  

4.  At the end of each month or week if you prefer, draw a line across the page and subtotal the amounts.

A 3-ring binder is also great for this because in addition to the category pages, you can add a clear zipper pouch in the back to collect all your receipts.  You can usually find in a school section of a store.

Check in tomorrow for an example of Categories.  You will see how “obsessed” (excuse me…”detailed”) I can be on dividing up expenses.  Ever buy makeup in the grocery store?  My brain refuses to let me list that expense under Groceries because my receipt says “Kroger”.    See you tomorrow!  Dana

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