Financial Maturity -Start easy, budgeting and record keeping

Budgeting: Oh, come on. I saw you roll your eyes on this one. So, in 50 words or less, tell me why making a plan and sticking to it is so hard. Go to my blog or send me an email and get the interactive .xls spreadsheet that will help you manage your obligations. I said this twice because I didn’t think you took me seriously the first time. Just send me a note at dick@dickivey.com and I’ll send you copy. Then make a covenant with your spouse to track every penny you spend for 30 days and report back. I mean it. Keep a note pad and pen and record every cent.

Don’t argue with me, just do it.

As a prelude to budgeting, start these practices. Before spending anything, ask yourself:

· Can I afford it?

· Do I really need it?

· Do I need it now?

· Do I have something like it already?

· Can I find a cheaper substitute?

· Is this the best deal?

· If you make it thru these questions, go home and sleep on it first.

Record keeping:

Two issues here…how to and who do.

· At a minimum get an accordion file and organize your receipts by creditor or account

· Consider using either an .xlsx spreadsheet or a system like Quicken to record what you are spending and to help you organize for tax preparation.

· Consider investing in a neatdesk or neatreceipt device (www.neat.com) or a service like (www.shoeboxed.com)

· Make an agreement on which one of you will be responsible for keeping the records. If you don’t have a plan you won’t do this. More on that later.