If you’re young and getting used to tracking your own finances, it can seem pretty difficult in the beginning. It may feel overwhelming, but there are several things you can do to make it easier. As you look for ways to get your money managed and trackable, you’ll find that you need to take the time to do finance tracking. It may take a while at first, but with some practice you will definitely get quicker! Read on for some bookkeeping tips!
Write Everything Down
One of the most essential steps in cash flow analysis is writing everything down. This will allow you to see exactly where your money is going so that you can make adjustments along the way. This will also allow you to look back at exact dates and transactions if something gets thrown off, or you have a suspicious charge. The trick here is to not discount expenses for any reason; you might be surprised at how a $3 coffee can add up if you buy it every day.
Keep it Separate
Don’t mix your financial information in with all of the other pieces of your life. Keep a separate sheet, book, binder, whatever works. This will allow you to be more organized, rather than constantly shuffling through all of the papers on your desk to find what you’re looking for.
If you’re not sure where to start, or what to do in a certain situation, don’t sweat it. Cash flow analysis takes time to perfect, and you won’t get better if you don’t ask questions. Find a family member that knows finance, or maybe a friend. If all else fails, you can always ask an accountant or tax preparer for budgeting assistance.
Tracking your finances is important. You will thank yourself when it comes time for tax preparation. Did you know that Americans pay about $140 billion in taxes each year? While 54% will get a refund, 24% will owe money, and of that 24%, 40% say they aren’t prepared to pay. Don’t be a part of that 40%. Be in front of your finances, and you can rest easy!