I like that book (“Your Money or Your Life”) too! My financial system is similar, but I don’t track all my expenses – just make sure that my VISA and cash purchases don’t exceed a certain amount each month. I used to track everything, but it’s annoying if you get out of date and either have to scrap a month or spend hours entering things. I figure, if I’m within budget, it doesn’t matter if I went to six movies or bought a bunch of new pens if somehow I managed to buy food as well. My system has served me well; I’ve actually managed to accumulate savings while in graduate school.

Yup. You were the one who first told me about the book.

I’m slightly obsessive compulsive so I like having it all recorded. Once you’ve been doing it for a while (I’m nearing 5 years now) it’s nice to have a complete accounting, and not wanting to “let yourself down” becomes motivation to keep at it.

I did stop entering everything for about two months. I still saved all my receipts though. Luckily I spent a day filling in for the receptionist at NPR so I had was able to spend a couple hours getting all caught up while getting paid for it. But I always remember those hours and now whenever I start to get behind and it encourages me to get caught up.

Also, it helps if you’re naturally pretty cheap like me and don’t spend much. :)