lesson 29: You must measure in order to manage

You can’t manage your money if you’re not measuring what’s coming in and going out. So start with the measuring, then you’ll know how much managing is required. Record everything coming in and going out for a month (three months is preferable though).

Do this using a blank spreadsheet or table with categories down the side and week 1 to 4 or 12 across the top. Use pencil and add the amounts as you go. For example, if you spend $10 on takeaway one day followed by $20 two days later, just erase the $10 and make it $30. If done daily this process takes less than a TV ad break.