Micawber’s famous phrases: “Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.”
Wilkins Micawber is the fantastic character of Charles Dickens’ book called David Copperfield, a story about a young man who becomes a successful writer.
Charles Dickens’ face was also on the back of a British ten pound note. Learn Why…?
Pocket Money Accounts Book
If you want to know how much you have or where your money goes, write down everything you receive and spend. Start off by doing it for a week. If you manage this, see if you can continue doing it for a month…. And if you really like it, do it for a whole year. You can write your amounts spent and received in a little book or you can do it on a spreadsheet on your computer, tablet or a smartphone application.
At the end of the month you will be able to see exactly where your money has gone and you can also see whether it was ‘well spent’. If you spend all your money, there won’t be any left to ‘carry over’ to the next month. Just try to make sure you don’t overspend… or spend other people’s money. The best way to remain in control of your finances is to keep these records.
Do you need it or do you just want it?
Are you still playing that video game you bought last month? Sometimes, you buy something that you want so desperately at the time but after a few days, the ‘wanting’ has gone and if you had the chance to buy it again, you would probably have bought something else or even saved your money. It’s impossible to predict how you will feel but if you can get over the wanting feeling, do a bit of research, have a look online at some similar products and compare prices, you might be glad you didn’t end up with something you don’t use any more.
Something that you can do which ties in with your bookkeeping is to create a spending plan. If you have thirty pounds/dollars/euros to spend on presents for Christmas or fifty pounds/dollars/euros for the summer holidays, you can divide up the total into different categories. Trying to stick to your spending plans is important but can only be done if your record keeping is in place.