The last post defined a budget in a simple way. A budget is a spending plan. It is a key tool to use when you want to gain control of your money.
Another tool to use in your effort to gain control of your money is the Income and Expense Register.
An Income and Expense Register records, or writes down, money activity of inflow (income) and outflow (expense) for your money.
A check register is a good example of an Income and Expense Register. For each transaction enter the date, received from or paid to name, the amount to be added or subtracted from the prior balance, and the new balance.
Common registers are a check account register or a saving account register. A register for ATM or cash withdrawals is helpful to monitor cash expenses. If you use a credit card, you should maintain a register for your credit card account.
A budget is a spending plan for future events. A register is a recording of current events. Using a register allows you to compare the actual spending of your money with your spending plan.
The amount of control of your money is a function of how well you use both of these documents. Used together, you will be able to understand how you are telling your money where to go and make certain it is going there.
For more information about budgeting and completing a register, email russ@russbellmoneycoach.com.