Many people would like to put their personal finance in order but have a strong hate for keeping records. Records are a cornerstone of organizing your finances because it is the only way how you can know how much is to be spent or is eventually spent.
It is quite easy to keep records nowadays with the advent of computers and software programs. But if you think computers are too much of a fuss the simple notebook is the answer to all your financial records problems, of course together with a pen.
The main concern is that through these records you should be able to budget for your money, track your cash flow, and keep track of how much you are saving, spending or investing. Also, know how much you have on your bank accounts, whether savings, salary of emergency fund accounts.
Through your budgets for particular period and your balance sheet for the same period your can tell by how much you overshot or saved on your budget.
Be diligent with your receipts however small. A small cheap folder can be used for this purpose. Take time to keep all those tiny receipts you receive everywhere and everyday as soon as you reach home, put them into that folder.
Keep all your receipts during the month so you can compare them against credit card bills, etc. You can throw receipts and bills out at the end of each month, if you recorded them.
Do not forget to record expenses which are not receipted. Also take note to record the payee of every check you write in your checkbook.
If you are computer savvy, various personal finance software packages can come in handy but to avoid all the hassle, Microsoft Excel will do a wonderful job in your accounts.
Every month you can make a table with income and expenses on tow sides and equate their totals and put the difference in savings or deficit column.
That way when you list all your incomes and expected expenses you can immediately tell how much you are saving after spending according to your budget, or by how much you are short.
When you can predict your financial future by budgeting and keeping track of your expenses, your personal finance becomes a very interesting journey.
It is also very empowering to know that if you want to save more you can cut a specific expense and go to sleep with the confidence of having saved some hay for a wet day.