Posted in Simple and Frugal Living

When you go shopping, or anywhere for that matter, what do you carry as a form of payment?  In years past, I would keep envelopes of money for different budgetary allowances.  When shopping for clothes, I could only take money from the designated envelope.  When the money was gone, that was it for the month in that category.  Another obstacle was that spending trips were getting muddled.  For example, household items, clothing, and food might all be purchased at the same store.  Trying to figure how much came out of each envelope was very time consuming. 

Since the inception of the debit card, I decided it was easier to carry this one card, than making sure I had the appropriate envelope with me, because it limits spontaneity, don't ya know.  However, my money spent seemed more difficult to keep track of.  At the end of a month I often would think, how could i have spent that much on food, clothes, school, etc.  Then the government helped me get smart about my spending.

I still use the debit card for nearly everything, but I track the money.  At tax time, we are allowed to deduct the total tax spent on purchases throughout the entire year.  So the hubby and I began putting all ofour receipts into a large drawer, to make it easier for tax time.  I don't think the government realized how easy this would make tracking expenses for families. 

Two ways that work, is to keep a spiral notebook as a budget book to record every single receipt or using your check registry.  I like the spiral notebook.  It's easy to set up:

1. Each page represents one month.  (If I get longer than a page, I am spending WAAAAY too much.)  Write the name of the month and year at the top of the page.
2. Skip a line or two and then begin listing your categories and entering the budgeted amount.  For example, Groceries: $200.  Leave a few lines between each category to record all of your expenses. 
3. Each time you go shopping, come home and review the receipt.  This takes a little discipline.  Write down teh date and deduct the amount spent from the line item.  i.e. Groceries: $200-52.60(4/4)=147.40-23.12(4/9)=124.28. 

That's it.  When you reach zero, there is no more to spend.  Like envelope spending, you will be cognisant of your spending, if you make certain to record every receipt, because you will see the amount you have left to spend. 

This system works even for people who do not work from a budget, because they can do the opposite, just to keep track of what they are spending.  i.e. Groceries: 147.40(4/4)+23.12(4/9)=170.52+68.93(4/12)=239.45.  For non-budgeting people, simply keeping a tally of what has been spent in a month for each category, will offer an awareness of outgoing money. 

By taking time to track your expenses, you will find that what is in your wallet, is a LOT more cash!

These are my thoughts.

Leslie Valeska

~Contributing Writer~

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