Do you track your finances?

Question

I have never been good at this. Keeping a budget or tracking my finances is pretty foreign to me. I have been looking into using Quicken for this, but it looks really overwhelming?

Is this something that 'most' people do? Track their finances, keep budgets, know where their money is going? My husband says most don't. But I think it's something we should start doing.

Any input or help is GREATLY appreciated!!

Answer 1

Probably most people don't that is how they get into debt.  

It is very wise to budget and track expenses.  It is about financial stability.  You dont' need any programs (and stay away from internet one programs), all you need is MS Excel or even pen and paper.  One thing you will need to do is get your husband on board or your goals won't be acheived.  

A great resource is Dave Ramsey.

Answer 2

Hi Friend,

It is a very important for all of us to track our finances because with the help of track we will able to know that how much we got (income) &  how much we have spend(expenditure). It becomes very crucial when we go for holidays or needed urgent cash due to some mis-happening or tragedies occur in family. It will help you in knowing exactly how much finance you have available & how much you have to borrow. I hope you find out the answer.

Answer 3

While I think your husband is right about most people not keeping track of their finances the benefits of developing and living on a budget make the effort worth while.

So to get started you can download a free budget spreadsheet from: http://www.bankrate.com/brm/news/debt/de... or use an on-line tool at: http://www.kiplinger.com/tools/budget/

Here are the steps to establishing a budget, in general you will be comparing your monthly income with your monthly expenses;

1. Determine your monthly take home income.  If you work in sales or on some type of commission make a conservative (low) estimate of your average income.  Then remember to save during the high income months for the low income months.

2. List your monthly expenses; Essentials first such as your rent, groceries, utilities, car insurance, car payment, car gasoline, student loan payment.

3. Utilities and groceries will vary from month to month so determine a conservative (high) average amount.  I include anything bought at a grocery store in my grocery budget, this includes cleaning supplies, kitchen and bathroom supplies.

4. Amortize your car insurance over the period of coverage, for example if you pay $600 for 6 months coverage the monthly expense is $100.  So put $100 each month in savings so you are ready for the next payment when it comes due.  A budget will help you begin to save for future purchases rather than paying for past purchases.

5. Include money in the budget for car maintenance, home repairs and medical needs, these expenses come along and will ruin a budget if you don't have something saved up.  I save $50 per month per vehicle for maintenance.  After some months go by and you have savings in the bank for car maintenance and emergencies it may be tempting to spend it, but don't.  Eventually you will need the money to repair your car or for some other unexpected expense.

6. Now that you have income budgeted for monthly essentials and debt payment the remainder of your monthly income can be budgeted for clothing, activities, gifts and holidays and savings.  Your first savings should be for a 3 - 6 month income emergency fund.  After 3 - 6 months income is saved you can start or increase savings for your retirement.  You might also start saving some amount each month for your next car so that you have at least a down payment.

One other important step to take is to record your spending for a month or two.  Most people are surprised by how much they are spending for some items; eating out, groceries, snacks and treats are typical.  Controlling your spending is the other side the budget balancing equation.

Finally, don't use credit cards unless you spend only what you have in your budget and pay the entire balance each month.  A budget takes 3 - 6 months to take effect, some expenses may come along before you have money saved, but stick with it.  Your budget will catch up with any unexpected bills and you will have savings to cover the expenses the next time.

Financial problems are the number 1 cause of stress in families, living within your income will eliminate this stress and allow you live for your future rather than for your past.

God bless!