187 | The Spending Tracking Spectrum: Richard's Rules

Having no system for tracking spending tends to "work" for two groups of people:

• Those with income that dramatically exceeds their spending, OR
• People who are resigned to being perpetually stressed out about finances.

For the first group, the level of income tends to address concerns of viability, but not necessarily contentment.

For the second group, the experience is as peaceful and predictable as driving a car with a broken fuel gauge.

But tracking spending is not the same as budgeting. It's less emotional and more practical.

A few basic rules can allow you to track without losing your mind...or a relationship.

Richard’s Rules

1. Start with Level 1 and only proceed to the next level once you feel like a master of the current level.
2. Never skip a level - most frustration comes from trying Level 4 or 5 when Level 1 or 2 is all you need.
3. If you progress to a level and become overwhelmed, then return to your prior level knowing that you've found the bookkeeping equivalent of your favorite cozy sweatshirt.

Richard's Reminders

• Any tracking tool will work – usually the hunt for the best tool is a clever way to procrastinate, AND
• Reflecting on...monthly spending is mostly useless, annual spending is interesting, and multiple years begins to tell a story.