Pen, paper: weapons in budget battle

Ever gotten to the end of the month and wondered, “Where the hell did all the money go?” Sure, you know there were the regular bills you had to pay. But what about all the other money you busted your butt to make? Do you know exactly where every dollar went? You should. Why are some people so good with their money? And how is it that some people have no idea how much they are making and how much they are spending?

You work hard for your money, don’t you? Isn’t it time for you to know exactly what you’re doing with it?

Get yourself a notebook and a pen. That’s your Spending Journal. No fancy app required.

Write your bank balance at the top of the first page. Every time you spend a penny, deduct it from how much you have left in the bank. It doesn’t matter if you’re spending it using a debit card, a credit card, cheque or a bank transfer. Every penny gets tracked.

If you take cash out of the bank, deduct the withdrawal and leave some space in your spending journal to note what you spent the cash on.

Now you know exactly where your money is going, which expenses are necessary and which are . . . well . . . not so much.

When you get money, add it to your Spending Journal. This could be a paycheque, government cheques, a refund of medical expenses. Every penny that comes in goes into the journal. If you make money in cash, enter that too. Slipping the cash into your pocket and spending it willy-nilly is cheating.

Do this every single day for the next four weeks.

“But Gail,” you say, “who has time for this?”

Listen. You drag your sorry butt out of bed come rain, snow, sickness or exhaustion. You bust said butt to make money so you can have a life. Shouldn’t you spend at least one hour a month figuring out where that money is going?

People often assume that I’m good with money because I like doing all the tracking I talk about. Are you crazy? Who wants to do that? It’s not a matter of like or not like: I’m not so crazy about cleaning my toilets and hauling out the garbage either, but I do it.

There are days when I don’t want to collect receipts or write in my Spending Journal, when I just can’t be bothered. But needs must be dealt with. And if I’m not taking care of my money, who will?

C’mon, you can give up one hour a month of nonsense to take control of your money. One hour a month. Every time you buy anything, ask for a receipt, then add the info to your spending journal that night. It should take about three weeks for the habit to really take hold. Less if you’re smart. More if you’re a stubborn dog.