Keeping an expense log

Hi there,

I hoped that the last few post helped you guys. Which of the habits have u took to start with? If you have not done anything. Its a good time to start. If you have, i'm happy for you.
If you have not done anything. Why dont you start now.

Today's practice is to start recording all ur expenses. YES..from TODAY onwards.
For those that already are doin this. Keep it up, ur next step is budgeting.

Ok.. Follow these simple steps.

1) Download this file
http://www.2shared.com/file/3035322/b40012af/expenselog.html


2) Pls download the file above

3) Print the file/ copy to ur pda/ copy to ur notebook or alternatively you can get a small book tat u can carry around. The point is to be able to easily record every expense.

4) Do No.3...If you are still reading this but have not done No.3. You might as well press the X button on the top of this browser. Really, so such thing as later, later means never.

Here is where i would like to share something i would like to call 2min rule.
- Anything that can be done in less then 2 mins should be done immediately. The logic ? tens and hundreds of 2mins added up will be hours. By then it will be too much to do and never get done. Try this from now onwards.

5) Record your spendings according to the sample given

6) If you tend to forget, try putting some daily or weekly reminders in ur email / phone / pc . This will remind you to complete this exercise. Here again. 2 min rule. Do this if u know you sure will forget or become complacent after a while.

7) Do this for 3 months.

8) So wats the objective? To be able to know where your money go every month. This will make you realize on ur spending habits. The second is to now help you to budget.

Questions??

Yes what is category of Expenses?
Basically i would like to break it down to 6 categories.

1) Regular Expenses.
These are predictable regular montly expenses that you cannot do without. E.g house payments and utility bills.

2) Loan Expenses.
The title says it all. Its for all your mortgage loans, car loans and so on. If you have credit card expenses then it is cleared during the month then just enter under the its proper category, but if you pay minimum payments then it would be under here.

3) Annual expenses
These are payments you have to make on either annual or binannual basis. These are regular expenses such as car road tax, property tax, condo fees and other such things. You get the drift.

4) Variable expenses
These are unpredictable or controlable expenses, such as food, entertainment and clothing.

5) Unforseen expenses
Its for things that you pay for that you dont expect it to happen. It maybe a car accident repair cost, home repairs or even health care cost.

6) Planned expenses
For these its more for planned purchase, for e.g saved for a home improvement, new electronic gadget and so on. It must be planned and already saved the money for it.

Thank you.
Courtesy of Living Life Intentionally.