How to Totally Simplify Your Cash Flow Tracking


No doubt about it, budgeting and cash flow tracking are the most tedious parts of getting your finances in order. Tedious, but unfortunately, necessary. I simplify my tracking process by ignoring as much of my money as humanly possible.

What does that mean? It means I have a budget category called “already spent” that is comprised of all the monthly and annual bills that I can’t avoid. Mostly, it’s the bills that stay the same every month (i.e: mortgage, insurance, property taxes, annual vehicle registrations, etc.). I budget for them separately, using Excel (see my Excel video series for step-by-step instructions), and then I roll them all up into one category. The amount of money in that category is “already spent”, so the only money I need to actually track daily are the variable spending categories that are left (i.e: clothing, groceries, gas, entertainment, etc.).

I do put the hydro and heat expenses in the “already spent” category, even though they can fluctuate, but when I’m making my new budget each January, I pad them by about $100-$300 over what I spent in the last year to make sure that each pay period, enough is accumulating in my account to cover those payments.

I automate as many of those payments as possible and when the bills come in for the others, I just pay them and rest assured the money’s there to cover them.

Watch my newest Excel video to see how I use the “already spent” category.

For better viewing: click on the YouTube icon in the bottom right hand corner of the video’s window.




2 thoughts on “How to Totally Simplify Your Cash Flow Tracking

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s