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Showing posts from January, 2011

Ledger have to be KISSed too

When you try to keep a ledger to track your personal expenses, a decision have to be taken. Will I try to track every single transaction? Or else what transactions will I track?

I first started tracking my personal income and expenses back in 2007, I used a program that would set up few accounts for me. Out of the box, I had an assets group under which all the bank accounts would exists, an expenses group under which car, insurance, medical and other expenses would go. There was also an Income group, a liability group and finally the always complicated idea of equity.

As the set up was already given, I started to track every single movement of money, and believe me when I say that you will get tired, if you try to do the same. Live its too short to waste it tracking very beer you have drunk. Try to KISS (Keep It Simple Stupid), otherwise you will stop tracking all together. Below I state the points that worked for me. It does not mean it will work for you. Remember that this is for pers…