Step 3 – Start Tracking!

Start Tracking!

Start writing down everything that enters and leaves your bank account.

There are five basic categories:

1) Income – Paychecks, business income, interest, other income

2) Household expenses – mortgage/rent, utilities (electric, gas, telephone, cable/satellite tv, internet, etc.), home repairs/maintenance, etc.

3) Bills – credit cards, auto loans, other debts

4) Spending – groceries, clothing, gas, car repairs/maintenance, etc.

5) Savings – savings accounts, retirement accounts, etc.

Example:

Date	Payee		Income	Household	Bills	Spending	Savings
1/1/2012	Mortgage			1,500
1/2/2012	Credit Card #1				200
1/3/2012	Auto Loan				450
1/4/2012	Groceries					250
1/4/2012	Gas					60
1/5/2012	Paycheck		1,000				50
1/6/2012	Electric			300
1/7/2012	Cell Phone				200
1/8/2012	Fast Food					21
1/9/2012	ATM					100
1/10/2012	Store Credit Card				100
1/11/2012	Groceries					200
1/12/2012	Gas					60
1/13/2012	Paycheck		1,200				100
1/14/2012	Home Phone			35
1/15/2012	Utilites			75
1/16/2012	Hardware Store			50
1/19/2012	Paycheck		1,000				50
1/20/2012	Bank of Amer				100
1/21/2012	Gas					60
1/22/2012	ATM					100
1/27/2012	Paycheck		1,200				100
Total			4,400	1,960	1,050	851	300
Remainder	$239   left