I just read this article from the newsletter, and talk about timely!
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Numbers 6 ad 7 (How Am I Tracking Towards My Goals and Where Can I Cut Back on Spending) resonate with me.
I have a spreadsheet where I track my income, assets and general monthly expenses, and like the article mentions, it can change several times a year. This is a good reminder it’s time to update it.
@sthom, which of spending questions really jump out to you as important?
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I have a budget I review monthly, use cash envelopes and have a few sinking funds. 2022 is the year I work on the sinking funds though- adding a few more. That’s the tip that resonated with me for now.
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www.ynab.com is the best budgeting software/app out there as an electronic cash envelope and helps you plan for spending in advance.
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thanks for sharing, i tend to save all i can, because i am only one income, and i worry about making sure my bills get paid, i only spend on what i need, i did just buy myself, a new Kitchen set, and i am very happy, but i do try to save every paycheck and my social security
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Just seeing your question, @will.s Questions 1, 3, 4, 7, and 8. They are all good. But tracking is definitely my thing. I use Mint, use a spreadsheet, and have bills categorized and payments/receipts (screen shots w/SnagIt) for them in desktop folders, by year/month! My tracking is pretty anal, actually?.
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I use Mint and generally employ the 80/20 rule of my tracking. I find that I am too disorganized and ADHD to track every last penny so my method is general eyeballing like the following:
Every 2-4 weeks, I’d look at my net worth to see how it’s changed on Mint. And I’d also look at my spending. I then see if there’s anything egregious on there (i.e. a few minority of transactions responsible for most of my spending, or some market movement causing my net worth to tank). If there’s nothing there then I’m good and will do nothing. If there’s some big expense, I’ll make a note to not do that expense for a while (unless it’s something that’s absolutely necessary).
If my net worth has tanked, it generally is because of the market tanking. This just creates a buy signal for me and I put more money in the market.
I find that in this way, I can spot trends of what’s going on with my spending and I can shake out 80% of the problems by doing 20% of the work. I could probably track every last dime of what I’m spending, but for me personally, that’s extremely hard work. And I don’t think I’d be able to save that much more anyway if I put in the herculean effort tracking down the my long-tail spending.
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