In a previous post I talked about my method of tracking our household cash flow in order to determine if we are spending more or less than we earn. I also keep track of our spending that occurs on our visa as well as automated debits from our chequing account.
As worthwhile as I think those exercises were, I stopped doing them for the simple reason that I’ve been stressing out too much over our finances as a result of following them too closely. In particular, when following the individual expenditures I tended to get upset if we had unplanned expenses which affected our cash flow. Now I don’t want anyone to think that we are just going ignore our finances – far from it! We aren’t going to change our spending habits and the plan is to look at our bank account at the end of the month, figure out how much “extra” money we have and hopefully put that money into the mortgage. This “extra” money at the end of the month should be an indirect proxy for the cash flow calculation and will tell us how much we’re saving each month.
It was very educational to keep track of the expenses and cash flow for the last six months and hopefully we’ll do it again sometime in the future.