Somehow, I haven’t been diligent enough in tracking my cash spending. According to my Quicken software, my cash account balance is about $550. That means I should have $550 in my wallet and coin jar. That is obviously not the case. My lowest cash balance was $50 in May 2005. Since then, the recorded balance has grown in spurts to its current amount. Here’s a screenshot from Quicken (click to enlarge).
In reality, I have $80 in my wallet plus $20 in coins at the most. I’ll need to adjust my account for the $450 variance over the past year, at $37.50 a month. I’m thinking of categorizing these adjustments as Food:Dining Out or Food:Convenience. These categories most likely contain transactions I’d be inclined to forget to record in the software, for example, while I’m out of town on weekends.
Feel free to share how you handle these discrepencies. They can really add up over time if left unadjusted.
Updated July 14, 2010 and originally published August 21, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.