3 ms·

I live within my means but am not financially literate. It sounds like a good practice for me would be writing down my in/out cash flow - like you say, "It is a

I live within my means but am not financially literate. It sounds like a good practice for me would be writing down my in/out cash flow - like you say, "It is about being able to keep a 3 month to a full year of cash flow right in front of you, whether on a piece of paper or a spreadsheet". Is starting out really that simple? Writing down what comes in, and what goes out, and what you know will come in and go out?

toomuchtodo 10y ago
https://i.imgur.com/1rPEkGQ.png https://i.imgur.com/1rPEkGQ.png
- eggy 10y ago
  That's pretty neat. I'll have a better look at it later. Thanks!
  - toomuchtodo 10y ago
    You're welcome!
Kluny 10y ago
It's a good start. Read Mr Money Mustache to continue.
eggy 10y ago
It is simply keeping the expenses on the left rows, the time period on the columns (week, month), and keeping a running tally carried over to the next column at top. Sounds simple, but it is a powerful tool, since you see when you might actually dip to zero or below way before it happens, and you can plan. Simple keeping a balanced checkbook and writing your known expenses, is necessary, but does not provide the look ahead. You'd be surprised how many people who make more than 6 figures get caught short some months when for the year they're OK, but due to the ins and outs of cash flow, they are at a deficit one day or week out of the month. You can find plenty of templates online. I keep mine simple as compared to what my past business accounting was. I am hoping to get more deeply financially literate when it comes to things like investments for my future (kind of late now, and a fallout of how I was raised), but more so that I can at least teach all of my children. I don't subscribe to the work and retire model. I personally work to make ends meet, and work on my personal interests at night, or when I stop working and live cheap to devote more effort to the next round.
et-al 10y ago
I have a friend who used to write down everything he spent money on, then tallied it up weekly to see if he was on track. Over time he stopped doing that and transitioned into what happened that day, and now he keeps an interesting and concise journal. So if you need additional motivation, think of it as journaling. When I travel, I still write down my expenses and what I did that day. I figure it'd be useful when I'm old to tell the kids how much a 1GB prepaid SIM cost "back in my day." But seriously, keeping track of your expenses is a fundamental step in financial literacy. Hook everything up to Mint if you can't be bothered writing daily logs.

toomuchtodo 10y ago

https://i.imgur.com/1rPEkGQ.png https://i.imgur.com/1rPEkGQ.png

eggy 10y ago
That's pretty neat. I'll have a better look at it later. Thanks!
- toomuchtodo 10y ago
  You're welcome!

Kluny 10y ago

It's a good start. Read Mr Money Mustache to continue.

eggy 10y ago

It is simply keeping the expenses on the left rows, the time period on the columns (week, month), and keeping a running tally carried over to the next column at top. Sounds simple, but it is a powerful tool, since you see when you might actually dip to zero or below way before it happens, and you can plan. Simple keeping a balanced checkbook and writing your known expenses, is necessary, but does not provide the look ahead. You'd be surprised how many people who make more than 6 figures get caught short some months when for the year they're OK, but due to the ins and outs of cash flow, they are at a deficit one day or week out of the month. You can find plenty of templates online. I keep mine simple as compared to what my past business accounting was. I am hoping to get more deeply financially literate when it comes to things like investments for my future (kind of late now, and a fallout of how I was raised), but more so that I can at least teach all of my children. I don't subscribe to the work and retire model. I personally work to make ends meet, and work on my personal interests at night, or when I stop working and live cheap to devote more effort to the next round.

et-al 10y ago

I have a friend who used to write down everything he spent money on, then tallied it up weekly to see if he was on track. Over time he stopped doing that and transitioned into what happened that day, and now he keeps an interesting and concise journal. So if you need additional motivation, think of it as journaling. When I travel, I still write down my expenses and what I did that day. I figure it'd be useful when I'm old to tell the kids how much a 1GB prepaid SIM cost "back in my day." But seriously, keeping track of your expenses is a fundamental step in financial literacy. Hook everything up to Mint if you can't be bothered writing daily logs.