Question on Personal Finance?

Question

Qn 1:
Any individual got record down all the financial transactions down on paper? Will you compare all your savings and withdrawals with other months and every 3 mths?

Example: You spend how much, save how much, withdraw how much cash, deposit how much cash? Then you compare with the previous month?

Qn 2:
If I withdraw $100 out, then deposit $100 back to my account, is it considered as savings or just to compensate for the withdrawal?

Answer 1

I budget by the year not per transaction and only count savings as money transfered to my brokerage accounts or 401K net of any withdrawals.
I keep enough in checking for cash flow and move money when it grows too much for my needs. If I run short I can transfer some back but my total savings for the year is the net I put into investment accounts.

Answer 2

1. I don't compare down to the transaction level, but I do keep a spreadsheet of all my accounts and major assets, and update their current balances once a month to track my net worth.

2. You didn't save $100. You just replaced what you withdrew. Now lets say you withdrew $100 and spent it, and then a few weeks later had an extra $100 and deposited it, then yes I would say you saved $100.

Answer 3

i am retired so i make a game out of it -- yes i budget 6 months out and keep the past months for tracking purposes---
no you did not save you just replaced the money you spend!!!!