Ledger your Spending...Introducing the L-Word
John D Rockefeller began the habit of recording every penny spent and earned in his life. These were very small amounts of money that he was dealing with…but the idea is not the amount but the fact that you were recording your financial choices…and reviewing them each day…it would give you an understanding of the “value of money”.
Set up a ledger with a columns for each of these headings; Date, Explanation, Money In, Money Out and Balance. Set a high standard of insisting that you record all your transactions of the day in your ledger before you go to bed.
In a previous entry I introduced the “F-word” and now you have the “L-word” to add to your success vocabulary. My students come to me and are amazed at how this system holds them accountable for their spending by making them review their spending decisions daily. You do not need a “budget” if you are doing your ledger each day. Most people I know say, “I need to get on a budget”. Budgets do not work in my experience because they do not give daily feedback.
Please leave your ledger stories by making a comment on this blog entry…it will be encouraging to others.