you, your money and your accounts.

In the last post,  I wrote about maintaining  proper accounts for our income and expenses and to treat this process with all sincerity. The reason being when we talk to people about this process of account writing the response we find is very disturbing. Some of us resolve to start account writing as a new year pledge and continue this till 31st March..thereafter the interest fades and gradually in the second quarter it is fully discontinued.So also many others have  started the process just continue in a haphazard manner and for some months and give the process a decent burial. We should avoid such kind of half hearted attempts and once started should continue this for ever.

First of all the process of account writing must be enjoyed and done willingly. All the members of the family can join this and make it a fun filled exercise. For example, the children can be asked to total the day”s expenses, the spouse can suggest areas where the avoidable expenses can be reduced . There should not be any obsession with the process of writing accounts.If on any day a  small amount could not be accounted for due to forgetfulness or any other factor such amount can be treated as sundry expenses and forget then and there instead of harping on the same and irritating the concerned family member. The expenses can be broadly classified under 5/6 important groups like groceries, vegetables, Education, Power, and communication etc and small expenses not falling under any of the bigger groups may be treated as sundry expenses.At the end of the month, both income and expenses must be tallied. This process will let you know where the goes and whether income is spent in productive ways.

A typical account properly written may look like this:

Total income : Rs 37,000.

Total expenses Rs.33,800.

Savings :Rs 3,200.

If any of you can notice a very important correction to be made in the spending process of this account writer please comment.

PichaI.