Judy,

Answer for Question 1
We keep a running spreadsheet of our expenses and we record every single penny.  When we first started, we would record our expenses in the spreadsheet every single day.  Now we do it about once a week.  If we go any longer than that, it becomes a pain to catch up.

We put all receipts in a little basket by the computer.  We try to get a receipt for everything, but when we don't we immediately write our cash purchases down on a piece of paper and place those with the receipts.

So all the little receipts stare at us until they are recorded on the spreadsheet.  Then the cash receipts get tossed and the non-cash receipts go into another basket where they wait for Linda to record them in the checking account register.

Then they go into another basket where they wait for the online bank statement.  Then Linda reconciles the bank statement.  We keep the "business" receipts for our records and everything else gets tossed (unless it is a big purchase where we might need it for a return or warranty).

Short answer:  We record data at least weekly. 

Answer for Question 2
We are on a sort of a modified "cash is king" system.  We do NOT use credit cards - ever.  We have one for emergencies, but we have not used it.

We use our debit card for almost everything.  Dave likes debit cards, but he still says you spend more with debit cards than you do with cash and I agree with that statement.  Paper cash money is just psychologically harder to hand over than plastic money. 

However, the debit card is the next best thing to cash.  And we don't want to carry a lot of cash or run to an ATM often (even though our account reimburses us for ATM charges up to $250 a year).  We get $200 in cash about every three months.

Our VISA debit card gives us reward points (no big deal) AND the charges are not taken out of our checking account until the end of each month.  So we earn interest for a few to several days on money that has already been spent.

So we never use credit cards, we rarely use checks, we rarely use actual cash, and we almost always use plastic cash in the form of the debit card.

So if "cash is king" means actual paper money, the answer is "no, we don't follow that credo".  But if "cash is king" means we don't use credit or spend what we don't have, the answer is "yes, we do follow that credo!" 

Sorry for another longwinded answer, but we have been asked those questions before, and I thought I would take the opportunity to elaborate for others and not have to type out the answer again for awhile. 

I love the Forum!  It saves me so much time in answering emails. 

-- Edited by Howard at 13:45, 2007-07-04

Howard,

Have you ever thought about using Quicken?  I have used it for probably the last 10 years and find it very useful for tracking expenses by various categories.  It also comes in very handy at tax time as you can download to Turbo Tax and other tax preparation programs.

Regarding spending, we use our credit card for most major expenses, including weekly shopping.  The credit card balance gets paid off every month by direct debit from our MM account so no worry about getting hit with interest on the unpaid balance.  We also get points which as you said is no big deal, although we will soon be receiving a $100.00 credit to our Visa account for points accumulated.

Debit cards scare me a bit since you read so much about people stealing PIN numbers.  With a credit card I don't think you are responsible if someone uses your card number illegally, not sure how that works with debit cards.  Also, with a credit card you can protest a charge if you have a problem with the product or service purchased. 

I have used both Quicken & Quickbooks in the past.  But I'm just comfortable using my spreadsheets and various formulas to get what I need.  Still gotta do the data entry. 

As for the debit card, we have never told anyone it is a debit card and we never use our PIN unless we are at an ATM.  When asked "debit or credit" we always say "credit".  No problem.

As long as the debit card is a VISA, Mastercard, etc.  debit card owners are entitled to the same protection as for credit cards.

Regarding using the credit card for everyday expenses, for those with lots of willpower and the ability to pay it off every month, it's probably not so crucial.  But the CC companies know that if you have that plastic in hand you are going to spend more. Thus they are marketed so heavily to those in their young, wild, hormonally driven years. Spend Now, Worry Tomorrow! You are Ours for Life!

I use Quickbooks for my little home business and Money for personal accounts. While those programs can make things easier, it can take a long time to wade through the bells and whistles and figure out what you really need from it.  Sometimes I think just figuring out the information I want and need and building a spreadsheet for that would allow me more control-and I am all about control!

Judy

Howard wrote:

---

So all the little receipts stare at us until they are recorded on the spreadsheet.

Howard,

I just began using a spreadsheet to keep track of our expenses. I started out with categories that jive with the budget spreadsheet line items.

However, I have a dilemma. All 'Household' entries (for example) are not created equal. But the details get lost when all I do is add another value to the cell.

So, I was thinking of keeping a journal in which I would make a line item entry for each purchase, thereby documenting what it actually was, then check a box or something to classify that purchase as to which budget category it belonged to. Then at the end of the month I could transfer those column totals to the 'Actuals' spreadsheet.

But that all seems like a lot of work. Do you find it necessary to document things that way or are you content to just stick the values of the purchases into the generic categories and forget about it? I know I could always go back to the actual receipts (which I file by month) if I ever really wanted that level of detail.

So, in summary, do you keep a line item journal in addition to the monthly actuals spreadsheet?

thx...

-- Edited by jcw at 09:41, 2008-01-21

Howard: I take it you use a different line item spreadsheet for receipts every month to make those sorts come out?  Otherwise you could use another "sheet" for the receipts and for the main spreadsheet.