The final confusion is 'Account Suspended?'
- Making sense of accounts
In order to keep track of money and what is coming in and what is going out it is useful to keep some kind of accounts. This can be done quite simply with either a cash book or on a spreadsheet on a computer.
So that you know where you are up to make sure that you have different columns for the different amounts and keep it up to date. This means that you should have lists of all your regular outgoings such as rent or mortgage, utility bills and other ongoing payments.
You should have a different column for your income, and another for any outgoings that you make that are not regular. For example if you have a night out, or buy something, record the cost of it so that you are always aware of how much money you have.
- Cash flow
It is just as important for individuals to know what their cash flow is as it is for a business otherwise it is too easy to get into debt, and that has a nasty habit of spiraling out of control.
It may simplistic but keeping thorough records can be a real help in making sure that does not happen.