What is a practical way of tracking expenditures?
The goal is to start tracking expenditures, create target limits for each category, and then try to keep to them. They only way progress can be made with this is if the expenditures are accurately tracked. What are some ways of doing this in practice?
The financial counselor at the bank provided a list of categories. When asked how she tracks her expenditures, she giggled and said she doesn't, and she had no suggestions.
Here's one idea I thought of: at the grocery store, put separators on the belt, and pay for the categories in separate transactions. For example, one could start with "toiletries," then "over the counter medications," next "gifts" (if any), and then all the groceries as such at the end. I suppose one could try to train oneself to look at the receipts that evening and record the totals for each category in a spreadsheet.
Are there other ways? What have you seen work well?
A cell phone app would not be practical for this particular family.
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In this case, there is no desire to balance the checkbook at the end of the month -- just to track expenditures.
That simplifies things a bit, and also necessitates a different answer from the one I already gave. (Please wait 24 hours to accept an answer, because someone else is certain to have a good idea, too.)
Can you outline a slightly simplified way of updating a spreadsheet every day?
I'd probably do something like this, with a new spreadsheet tab every month
Many of the categories will have the same dollar amount every month. Only three will vary.
And what would it be like if one were to use pencil and paper instead of Excel?
PAINFUL!! There's a reason Dan Bricklin invented the electronic spreadsheet...
What do you call the category that contains clothes and antifreeze?
I call it "Other Stuff"
For example, one could start with "toiletries," then "over the counter medications," next "gifts" (if any), and then all the groceries as such at the end.
When shopping at Walmart, Kmart, Target, etc that sell everything, I asked my wife to split her shopping cart into two separate purchases:
all the stuff you buy at a traditional grocery store, and
everything else.
In my five years of expense tracking, that's Good Enough.
If you're buying clothes and -- for example -- a lawn mower, then yes that should also be split into two separate purchases. But clothes and a gallon of antifreeze go on the same purchase.
Beyond utilities, rent, insurance, personal fun money, etc, I've got three expense categories:
Groceries
Restaurant/Entertainment
Miscellaneous (where everything from clothes purchases to antifreeze and minor gift purchases go).
I suppose one could try to train oneself to look at the receipts that evening and record the totals for each category in a spreadsheet.
Well, yes. That's exactly what I do, not wanting Mint, Dave Ramsey, etc linked into my bank.
My "expense tracker" is part of my check register spreadsheet. One tab for the current month's checking account activity, and another tab for the credit card. All credit card activity is recorded in a separate tab, and is linked to a "pseudo-purchase" in the current month's check register. That way, at any point in time, you know exactly how much you have left in each of those three budget categories, and what your month-ending checking account balance will be.
(My system is home-rolled and has evolved over four years. I can't explain it will without showing it to you, and I definitely won't post that on the internet...)
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