Budget Tracking

Here we are -- nearing the end of November.  It's time to do two things in regards to our personal budget.

First is to review our Gift Giving category so far in 2012.  In light of what we budgeted and what we have expensed so far, we can better set our Christmas budget.  I have asked for Christmas lists from our immediate family.  I have also squirreled away just over $25 for my spouse for surprises! 

Second I will print out a list of our charitable gifting so far this year.  Together we will review these and decide the amounts and which charities we will give to by year end.  Without answers regarding taxes ahead in 2013, we may hold off to some extent and "expense" these in 2013.  Thereby reducing taxable income in a higher tax bracket year.

I use Quicken to track our cash flows.  I've used versions of this software for about 20 years.  I can reconcile bank statements in minutes.  I keep a written register with our checkbook and make entries into Quicken.  I rely on the computer to do the math.  Each entry on the computer demands a category.  At year end, I can print out payments to tax related items like real estate taxes, charities, medical expenses, etc.

I spend the most time in Quicken entering payments to our credit card.  I split payment into categories for each charge.  Here are some of my categories:  Grocery, Auto:Fuel, Entertainment, Medical:Rx, Misc:Hobby.  The time spent throughout the year yields accurate tracking of expenses so that we can intelligently establish our annual budget and review it.

'til later