To know if you are winning or losing you need to keep score. Just like in golf. You need to count all your strokes to know what your score was for the round and if you hit your goal or not. Also, you can see what areas that you need to improve in your golf game. Like I track not only my score per hole, but also how many fairways I hit, how many greens I hit and how many putts I made during the round also.
That is why Darlene and myself track all of our Expenses and Income daily. We need to be able to see if we are winning or losing against our budget and goals towards Financial Freedom.
As always, I am not giving you any Financial Advice and you should seek advice from your Professional Advisors to see what is best for your situation. See my Disclaimer at MillsWay.com. This is for entertainment only.
We track expenses maybe old school for some people but for us it adds something to the power of tracking by writing it down on our forms we have made up daily. When we write it and see it then helps us control our spending the rest of the month.
Our monthly expense forms that we write our expenses down on is pretty basic and we make subcategories in some of the columns. Some of the main columns are;
- Home Expense column. We put our home taxes, home insurance, HOA fees, home purchases and home repairs.
- Utilities column. This includes our Electric bill, Gas and Water Bill, Net Flix, Disney+, Internet and cell phone bill.
- Food –We break out food for in our house and food we eat out in this column.
- All Car Expenses. We break out Gas, Insurance, Plates and repairs.
- Miscellaneous other than food column. We break out clothes expenses, gift expenses, Union Dues and miscellaneous expenses in this column.
- Kid Column. We track our kid expenses here. We break it out by each boy also.
- Entertainment column. We break out into Travel Expenses, Golf Expenses and General Entertainment Expenses.
- Insurance column. We break out Medical Insurance, Medical out of pocket expenses, Life Insurance, Disability Insurance and other insurance.
- Business Expense column. We break out our business expenses into Website, Advertising, Postage, Education, Product, Sales Tax, Miscellaneous, Miles and more.
- Savings column. Is broken into 401K, IRA, Brokerage Account and other savings accounts.
We also track any Income we bring in each day. On our form we divide our Income into different categories. Our categories are:
- Jobs – What we would make from any job we have that we get a W-2 at the end of the year. Darlene works for a grocery store currently, just until we finish off our Financial Freedom goals.
- Business Income – This comes from our many Business ventures we have. Some from our Website, Podcast, Our Books on Amazon, Self-Hypnosis CD’s, eBay store, Affiliate Marketing, Consulting to Financial Coaching Services.
- Dividend Income – This is currently our Dividend stocks that we have in our Brokerage Account.
- Miscellaneous Income – This is other forms of money we may bring in for the month.
Then we take all of our numbers that we wrote down and I add them up and put them on excel spreadsheets. I love spreadsheets so I do about 25 different sheets each month to see how we are doing and to analyze things.
We also track each month how each of our Investments are doing and what our Net Worth is for the month. We have a recap of past months and years so we can see our progress to Financial Freedom.
Then we take all those sheets to cover at our Monthly Review Meeting Party. At the Party we can see how we are doing and where we need to adjust so we can hit our yearly goals.
At the end of the year we do yearly recaps and then comparisons from other past years. This is another good tool for us to see how we are doing. Where we are winning or losing and areas we need to adjust or improve in. We do our home financial just like our business financials. We want to make sure we have a cash flow in both of them each year.
We teach our boys to track their expenses and income to help them stay on budget and on track towards their Financial goals. So far, they haven’t been tracking their own but hopefully as they see us do it and hear us talk about it daily that they will once they are out on their own.
Here are some positive quotes I like;
“Get your Money to Work for You… As hard as You Work for it.” By Napoleon Hill
“1. Make Money. 2. Use the Money to Make More Money. 3. Repeat the Process.” By Warren Buffett
“There is no way to happiness; happiness is the Path.” By Buddha
“Change Your Thoughts – Change Your Life” by Wayne W. Dyer
Let me know your thoughts about this blog and let me know of others you would like me to do in the future. I feel we can all learn from each other. That is why I am in the helping people retire early, enjoy life more and be more successful. Also, please see my Disclaimer page.
Don’t give up on your dreams; don’t let others talk you out of your dreams. Make your dreams happen. Make it happen today.
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