Back to Basics
Keeping track of my spending by hand.
I wasn’t planning on making a resolution this year, and I normally don’t, but an unexpected phone call from my credit card company forced my hand. I had missed my payment during the holiday season, which wasn’t a huge worry, since I regularly pay my minimum and move on with my life. What worried me most is that I completely forgot, and at the same time wasn’t completely aware of how much money I had.
I decided to take a hands-on approach. I initially wanted to set up a ledger system, in which I documented my expenses and income on a large sheet, but quickly felt it would demoralizing to continually see “beer, beer, beer” in the expense column. I settled on a simpler solution, and one in which I felt the learning curve would much less steep.
I started an income journal, called “Daily Cash,” with the intent to track just that. I wanted to be able know exactly how much money I had on hand at any given time, which is difficult in the service industry, or any industry that relies on a largely cash-based income. This is something that plagues the entire industry—probably by design— because it’s difficult to save, or be responsible, when you’re unsure of how much of the money in your pocket should be dedicated to obligations. Similarly, in an almost innate way, the money that you’re physically holding somehow always manages to feel like spending cash.
I’ve consistently tracked my money this way since the beginning of the year. Every seven days I do a ‘week end’ total where I add up how much money I have on hand, and how much all totaled is in my two checking accounts and one savings account. I’ve left out credit totals, for the purpose of not counting on that as a source of income, so I can begin paying that debt down. This old fashioned, pen-on-paper method has helped me learn two critical things, one that I hope will continue to benefit me, and another that illuminates a glaring weakness in the way I spend and save money.
The great benefit of using this system is that I’m never blindsided by a lack of income, or an inability to pay for something vital like my phone, credit card, or Netflix bill. I sit down every morning with a cup of coffee, grab a pen, open a book, and shuffle mostly worn bills through my fingers. This physical connection to what I have is unmatched by a screen or a login. Also being able to go through my day with an actual number in my head of how much money I have is something I think more people should experience. It alleviates a small sense of worry, mostly because since I’ve started the number hasn’t been “$0”, and being able to use my brain as a cash register is kind of fun. Trips to the bank, and deposit schedules are something I have to plan for, but I’ve also helped myself a lot by giving myself time to make sure my account balance doesn’t get too low.
The big drawback in using this simple system is that I haven’t factored in a budget. It’s great knowing how much money I have at all times, but it does nothing to help me plan expenses or allocate my money. I should be thankful that it has revealed a “poor-person script” of mine that basically allows me to justify larger, more spontaneous purchases by spending very little in the meantime. As an example of this, I know for a fact that I spent $164.38 between February 19–22. In the eight days prior to that (Feb. 11–19), I spent $155. Having that information on-hand is very useful, but it doesn’t help to counteract such a large discrepancy in spending.
I suppose that I’ve learned that resolutions are more about an understanding of yourself, where you are, and where you want to be, and less about accomplishing those desires out of the gate. I’ve gained a useful tool that has become a habit in just eight weeks, and I am actually more conscious about what I spend, and what I hope to do. (A few times I’ve stopped myself from getting this tattoo I really want). My next step in gaining more financial control is to incorporate a budget, which I don’t think I would have learned so clearly without this current project, so I can be able to plan for, and get the things that I want while I’m saving for the near future and beyond. It’s refreshing to know that a little dedication can go a long way in being able to care for myself and my financial future, and I welcome the challenge of improving my thinking and relearning good habits.
Drew Jones is a student in Houston, TX., pursuing a career in journalism in the online medium. He is an emerging writer focused on pushing conversations forward across different perspectives, especially in the fields of politics, culture, and race.
