Yesterday, I told you that you would have an easy task today, and it's easy, but it will take you a little time to complete it!
I want you to write down every dollar you spend and what you spent it on for one month. I had a client return one time after completing this task, and $2,000 was labeled miscellaneous! Now, I don’t mind if just a little bit of money isn’t categorized, but $2,000 in misc. is a cop out. You need to be honest about how you spend your money. Remember that these are your cash flow decisions, so don’t worry about making me (or somebody else) mad. If you don’t do this honestly, it won’t work.
If you use an ATM card, the withdrawal isn’t the transaction, it’s what how you spent the money. So “ATM” isn’t a category either! If you have a weakness for $5 lattes, write it down. If you like electronics, write it down.
I don’t want you to judge yourself while you do this. There are no wrong answers, just an honest look at where your paycheck’s going. I told you it was easy. Tomorrow, we’ll figure out why this is so important…..
Be prosperous!
Peggy
I've been thinking about personal cash flow; and I really think refering to my spending as personal, and as cash flowing because of my personal choices rather than a budget puts the proper spin on my spending. A budget has always been on the same level as a diet, strictly cutting back and being judging every little thing I do as whether it's right or wrong. Thanks for the perspective. I am printing out a little calendar of Jan. right now for my purse so I can jot down everything I spend each day and then later catergorize and track my personal cash flow. Looking forward to your next post!
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