Speak4Money

KEEP TRACK OF YOUR MONEY

These days we usually just spend, spend, spend without keeping a record of our daily cash-outs and cash-ins. Are we spending more than what we earn? We will only know this if we keep track of every single expenditure that we do everyday. I am not an accountant and neither do I follow this that is why like many, I am always cash-strapped. But we do not have to be always trapped in this situation. We need to be vigilant with the money we make. Money is hard to find but so easy to spend. If we keep all our earnings or money in one place and do not have separate banks for our individual needs, then we will forever find ourselves losing money fast.

I got this practical suggestion from a friend who guards his money like trained dog. He said he has a separate bank account for his business and other bill payments, another one for savings, and another account for his petty cash.

For his business, he had opened a checking account where all his payments and purchases are taken. This is where 60% of his money goes. He keeps 10% for savings in another account with

a passbook which is purely meant for his savings. Then he deposits 30% to his ATM for his daily cash needs. When he runs short of cash, then he withdraws here.

I thought about this and I think it's doable. What dya think? Any other brilliant tips?