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Track Your Spending with a Cash Notebook Print
Wednesday, 15th November 2006 (by J.D.)This article is about Hints and Tips, Real-Life, Tools
I had dinner with my friend TJ tonight. He paid for his meal with cash. After we’d settled the check, he pulled out a small spiral notebook and jotted down some numbers.
“What’s that?” I asked.
“I’ve started using a notebook to keep track of what I spend,” he told me. “Whenever I pay in cash, I write it down. Otherwise I don’t have any idea where it goes.”
“That’s a great idea,” I said. “I track every penny I earn and spend, but I do it on the computer. I use Quicken. It helps me know what I’m doing.”
“I don’t have the discipline to keep track of my finances like that,” said TJ. “Besides, I’m not trying to track every penny. But since I moved into this new house, money’s been pretty tight. I feel pinched. Keeping this notebook gives me a rough idea of where everything’s going. I’ve always been able to check on things when I use a bank card, but cash has been a problem. Now if I find myself wondering where I spent that $20, I can look it up here.”
“I have trouble tracking cash, too,” I said, “even though I track everything on the computer. If I take out $40 on one weekend, but don’t do my finances until the following weekend, I can lose track of things. I just did my finances on Sunday. I got stuck because I’d spent $3.58 in cash someplace I can’t remember. Maybe I should keep a notebook, too!”
TJ nodded. “The notebook is also a preliminary step. I’ve only been doing this for a few weeks. I may decide that I need to do more. Maybe I’ll set up a budget. Maybe I’ll have to get Quicken.”
This is an example of learning to do what works for you. Everyone can find some method that will allow them to track their spending and make corrections if necessary.The cash notebook reminds me a little of Merlin’s Hipster PDA. Solutions like this are awesome. They prove that high-tech isn’t always the way to go. Often you can improve your life for a buck-ninety-eight.
November 15th, 2006 at 7:35 am
Rockefeller used to do the same thing, since like age 6, when he started buying candy in bulk and selling it retail to his friends…
November 15th, 2006 at 8:59 am
I stuff receipts into my tiny wallet. If I don’t want to walk around with a big bulge in my pants (har har), then it motivates me to empty my wallet and record where my money went.
November 15th, 2006 at 9:01 am
I do this, too, but for some reason I don’t like to mix cash receipts with credit receipts. Also, not every place gives a cash receipt. It’s always bad news when I empty my wallet to find more than two weeks worth of receipts. That’s a sure sign that I’m going to have a marathon Quicken session and I’m going to have trouble finding something…
November 15th, 2006 at 9:09 am
I’ve got one of those daily calendar books (they’re called diaries here in the UK). I keep it on the counter in the kitchen. I write my spending down on the appropriate day’s page. If I find a receipt in my pocket, I can check it against that day’s page in the calendar, and write it in if it’s missing.
November 15th, 2006 at 9:26 am
I used to track cash on a palm pilot, but I found that there was a declining margin of utility in that I was spending a lot of time tracking purchases that were not worth tracking. My current method is much simpler. I go to the ATM only once a month, and I can use that money anyway I see fit. The spending is therefore controlled, which is the original purpose of tracking it to begin with. I usually carry one week worth of cash at a time, leaving the rest in an envelope at home.
November 15th, 2006 at 12:54 pm
I keep track of cash with an envelope wallet system. I got this wallet from Dave Ramsey’s website and it works really well because I can keep a record on the envelope I am using. I have the envelopes categorized- food, clothing, etc. I think using cash is the best way to go as long as you have a budget in place.
I started doing a zero based budget about a year ago and it has been the best thing for my family.
November 15th, 2006 at 1:34 pm
You can make personal organizers over at http://www.pocketmod.com as well. Its free!
November 15th, 2006 at 5:44 pm
I live in China where pretty much all transactions are cash, so I guess I use cash much more than I would in the US.
I have a hipster PDA, and in it I have a card on which I keep track of cash I spend (I also have GTD next action lists, and flashcards for reviewing my japanese / arabic when I’m waiting for the subway).
Works fine! I haven’t gotten around to transcribing it into the computer tho
But it’s still a useful answer to “where did that money go?”.
November 16th, 2006 at 7:53 am
Between the computer and a notebook either works well for me but I found that the little notebook captured more. Either or is a matter of self discipline.
November 16th, 2006 at 8:03 am
We track purchases with Quicken, and both my husband and I have PalmOS devices as well, so we use PocketQuicken for this sort of tracking.
We have virtual accounts set up for “K. cash” and “R. cash”, and try to log purchases as we make them. I know I am not as accurate with the cash purchases — since I don’t always get a receipt, sometimes if I’m recording the purchase a bit later, it does get rounded off.
November 16th, 2006 at 10:05 am
Odd guy out - I tried to do this off and on for years, and was never successful. A couple of years ago, I had a problem with a member of my household pilfering wallets, and I got fed up, got a debit card and have not carried cash since. It’s easier to track, and - *for me*, I know this is not true for everyone - easier to discipline as well. I’m less likely to pull out the card for a $2 or $3 purchase, so instead of spending more, I just pass on the purchase entirely (and this is helping with the weight loss thing as well, particularly with the drastic decrease of chocolate raids at the gas station across the street from my office). If one of my my housemates asks for five bucks for gas, I say, “no, but I will go to the gas station with you and fill up your tank.” I remember that I spent it, I have a record of how much I spent, and I know that there won’t be another $5 emergency in a day or two.
November 16th, 2006 at 11:02 am
I don’t have the personal will to write down every cash purchase on a regular basis, but my darling girlfriend and I once did it for every purchase for an entire month. It was remarkably informative, even for someone like me who’s a congenital tightwad. I can’t recommend the exercise highly enough.
November 17th, 2006 at 6:57 pm
I am a financial retard and spendthrift. However, I worked my way out of 20K in debt on a nominal income through tracking my expenses. This IMHO is THE WAY to stay on budget, spend wisely, and get rich. Now I can blow money securely, knowing that I can budget for it. It feels like I have more money than most people I know, but it mostly because I am rigorous in tracking it. Try it. Track, budget, save, invest, and you are guaranteed to become rich. I know, because I did it.
November 18th, 2006 at 1:52 pm
[...] Conclusion I often stress the importance of tracking what you earn and spend. It’s one of keys to accumulating wealth. From my limited use of Wesabe (I’ve only been using it for a couple of weeks) it offers some keen features. I can’t foresee it replacing Quicken at this point (and I’m not sure its creators intend for it do so), but it’s certainly an excellent supplemental tool. [...]
November 18th, 2006 at 1:54 pm
[...] Conclusion I often stress the importance of tracking what you earn and spend. It’s one of keys to accumulating wealth. From my limited use of Wesabe (I’ve only been using it for a couple of weeks) it offers some keen features. I can’t foresee it replacing Quicken at this point (and I’m not sure its creators intend for it do so), but it’s certainly an excellent supplemental tool. [...]
November 18th, 2006 at 1:55 pm
[...] Conclusion I often stress the importance of tracking what you earn and spend. It’s one of keys to accumulating wealth. From my limited use of Wesabe (I’ve only been using it for a couple of weeks) it offers some keen features. I can’t foresee it replacing Quicken at this point (and I’m not sure its creators intend for it do so), but it’s certainly an excellent supplemental tool. [...]
December 1st, 2006 at 7:06 am
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September 3rd, 2007 at 11:22 am
Great tips I also recoment microsoft money is a great tool to keep track of all your expenses.
January 7th, 2008 at 8:32 pm
[...] matter how you track your spending — the most important thing is to do it. You can use a cash notebook, you can use an on-line tool like Wesabe, or you can use a piece of software like Quicken or [...]
January 5th, 2009 at 8:41 am
We keep track of our cash with an envelope system. My wife bought an easy envelope system at http://www.crunchycute.com based on Dave Ramsey’s teaching and it works really well.
We have 11 categories for our budget and have had great success tracking our finances.
January 5th, 2009 at 9:37 pm
I record details using the voice memo feature on my phone, and then update my Google Doc’s spreadsheet when I get the chance. It’s 2nd nature now.
September 4th, 2009 at 1:48 pm
I get a receipt for every purchase - newspaper, coffee, anything I spend money on. I am forgetful, with the receipts I have proof of where my money goes and can enter it in my book later. This has saved me with my debit card too. The cashiers do not mind they just hit a button!