Basic Budget – Let’s Get Started

I’d like to take a direction that perhaps you haven’t tried yet, but first a little background. Many years ago I was in financial distress. I had already filed bankruptcy about 5 years previously and here there I was again in a financial mess. I was talking to a friend of mine who was a financial planner at the time and asked for advice. The first thing he had me do is what I’ll describe below. It might not be what you think…

To get started I was told to track my spending. Being in the computer field I immediately started to think spreadsheets and that was quickly shot down. I was told to keep it simple stupid (KISS). lol – I’m sure we’ve all heard that before right?

Simple but Effective

Ok, so all I needed was a pocket sized notebook and a pen. I was to carry this everywhere I went and make entries for every single purchase. Whether it be a cup of coffee, gas, lunch. Didn’t matter. The objective is not to evaluate where the money is going (that comes later). The objective is to record EVERY time I spent ANY money. The format is easy

Date Purchase Amount.

01/31/24 Gas 45.00

02/01/24 Coffee 3.50

That’s it. Pretty simple way to get started.

Start Now

The task I have for you is the same. Get yourself a small pocket notebook and a pen and follow the simple instructions above. For every purchase, no matter how large or small, write it down. Date it, record the purchase and the amount. Do this for one month.

Pretty simple. The point is that if you’re looking to get a handle on your personal finances, you first have to know where your money is going. Above is very simple but a great starting point.

I’ll be back later.