7. Step 2: Record

Some expenses, we just lose track of. Have you noticed how fast cash taken from an ATM disappears? To get an accurate and complete handle on where his cash is going, Henry begins to carry a small notebook and records even the smallest expenditures—the $2.50 for every coffee, the burger, the parking meter, the gas, lotto tickets. Some other expenses that are often ignored include cash church contributions; music downloads; computer repairs; charges for extra cell phone usage; entertainment expenses such as movies, drinks, sporting events, concerts’ automatic payments from checking or savings accounts, after-work socializing, and lunches. Henry gets all those expenditures in his notebook for a month.

Balancing your checking account is an important part of recording your expense. When you "balance" your checking account, you're keeping an up-to-date record of how much money is in your account. This will help you avoid overdraft fees and other headaches. Check out our checking account balancer calculator to quickly and easily get a handle on your account balance.

Checkbook balancer