Tracking
1. Choose your preferred modality - a small notebook, a classic checkbook
register, or an app. Where do you like taking notes? Which option makes you feel
happy and inspired? There may be others! Suggested apps - iPhone: iReconcile
Droid: Loot, Spensa Lite or Expense Manager
2. Set it up with separate registers for each account. At the very least, set up
your primary checking account and your wallet as a cash account. Consider adding
active credit cards, regular active savings accounts, and other checking accounts. If
you’re using a notebook, each account should start on a separate page. In a
checkbook register, consider starting your cash tracking on the last page or use a
paperclip to easily access the middle of the book and start a separate account there.
3. Enter the first transaction in each register – the starting (current) balance.
For your cash, literally count your cash and record it. For the other accounts, login
online and record as close to an accurate balance as possible excluding pending
transactions. Be sure to think carefully about any un-cashed checks you’ve written
or any other ways the online balance might be off.
4. Start tracking! Out and about in your daily life, record every single thing that
happens to your money – debits, deposits, checks, automatic payments (you’ll have
to login more frequently and pay attention to when these happen), reimbursements,
refunds - all of it. Note: transfers will affect two of your registers, for example, when
withdrawing cash from the ATM, you will subtract the amount from your checking
register and add the amount to your wallet register. The same mechanics apply to
credit card payments – record the transfer in both registers.
5. Do the math – I call it the courage to subtract. Everyday, use your big-button
calculator and subtract what you spent and add what you deposited. Maintain a
running balance, you should always have a current balance in each register.
Tips – If for some reason you can’t record a transaction in the moment, be sure to
get a receipt. If you’re buying fruit from the guy on the corner, write a note on a
business card or napkin. Record the day’s receipts when you get home. Warning –
do not let the receipts pile up – they will start to grow fangs in a few days!
If you choose to set up a notebook or paper checkbook register, decorate it! I
personally added glittery heart stickers to my first register and have clients who
wrote affirmations on theirs with multi-colored markers.
If you lose track or the numbers stop making sense, don’t stop tracking. Write
balance adjustment under What/Who/Where, record the difference under In or
Out and update the correct balance. Move on!
Why – Tracking is the first essential step for clearing the money fog, getting you on
track to achieving your goals and creating a healthy relationship with money. I
promise there is a method to the madness and this is just the beginning, it’s a
layering process. The goals of this exercise are to always know where you stand, be
ahead of online banking, and be present with your money. Many clients ask, “How
long will I need to keep this up?” It depends on your personality. For some people,
1-3 months of tracking is enough, but for others like me, it becomes a life-long
practice. Most people fall somewhere in between, but gear up for the long haul - it’s
incredibly empowering and you might love it! Make it personal, have an open mind
and be curious – I can’t wait to hear about what you discover!
BOA Checking Account
DATE
WHAT/WHO/WHERE OUT
IN
BALANCE
1-9-14
starting balance
$89.11
1-9-14
groceries
$21.08
1-9-14
paycheck – school
$1,200
$1268.03
1-10-14
coffee
$4.30
1-10-14
H&M
$222.22
1-10-14
car payment
$199.46
$842.05
1-11-14
ATM
$100
$742.05
1-30-14
visa payment
$597.33
$144.72
----------------------------------------------------------------------------------------------Wallet Cash Account
DATE
WHAT/WHO/WHERE OUT
IN
BALANCE
1-9-14
starting balance
$303.19
1-9-14
babysitter
$50
$253.19
1-11-14
ATM
$100
$353.19
-----------------------------------------------------------------------------------------------Chase Sapphire Visa
DATE
1-9-14
1-9-14
1-10-14
1-14-14
1-30-14
OUT
starting balance
Netflix - auto-pay $7.99
clothes at Bloomies $333.33
return shirt B’s
payment for January
WHAT/WHO/WHERE
IN
$54.99
$597.33
BALANCE*
$311
$652.32
$597.33
$0.00
*I made the running balance in my credit card register a different color so I am very
clear this is money owed and not a positive balance.
© Carrie Birgbauer – NY Money Coach – All Rights Reserved