Finances

We aren't born knowing how to handle money. Many of us didn't learn when we were children. Unless we made it our business to learn the principles and skills of personal finance, we probably are still going by what we picked up from the popular culture. If that's so, we are most likely operating on the principle that the object of personal finance is to have as much money and high-priced stuff as possible - whether any of it has anything to do with the life of our dreams or not.

Having learned about personal finance late in my life, I'm a great proponent of tracking income and outgo down to the penny every single day. I know - that sounds really anal. On the other hand, if I were working for any business, that would be required of me because it's very good business practice. If it's good business practice for someone else, why would I want to shortchange myself? The point of all that tracking is to make sure my money goes where I choose and not where my subconscious chooses (which is probably based on what I saw on t.v. or what I saw someone else had).

Once the habit of taking care of my money like I am a business (which I am) is well established, it only takes a minute at the end of the day to check and see whether the money in my pocket is the same as it shows on my records for the day. If I wrote any checks, they should be recorded in my checkbook register. If I charged anything, I should have the receipt. If I spent cash, I wrote that down on an index card.

Day by day, by keeping daily track of my money, I am aware and totally conscious of where my money goes. Often I notice that I spent little dabs on money unconsciously and when those little dabs are added up at the end of the month, I would have had a big start on a big vacation! The more I'm aware, the more I spend money according to my actual wishes!