Record Keeping

Record Keeping

The thought of record keeping can be a bit intimidating.  But it need not be.  Record keeping:

  • Is simpler than it seems;
  • Takes less time than you think;
  • Does not require an advanced mathematics degree
  • Is not the same as budgeting!

This last point is particularly important.  Record keeping is a way of understanding where the money has gone (past), whereas budgeting is a way of planning where the money will go (future).

In your pre-work, you filled out a form entitled “What I Spend.”  How confident were you in the numbers you provided there?  Did you find it easy to identify your spending in all the categories, or were there some where you were uncertain?

It’s not usually difficult to know what we’re spending in areas where we receive monthly bills, like housing and utilities.  But other more variable categories can be more challenging.  Did you struggle with the numbers in areas like clothes, groceries, and entertainment?

Record Keeping will help you in areas like these to know how much you’re actually spending.  If you’re not sure how much you’re spending in any category, it’s probably a bit more than you think!  Having good records is a key to successful budgeting later on.