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A money log is one of those tasks you might want to postpone, but don’t!
You, your future caregivers, and your estate administrator will greatly appreciate and thank you for this. It will be helpful if you, like many older women, go through a divorce.
I often catch myself saying, “Just do it!” I echo these same honest, frustrated words about daily exercise. I urge myself to do it, do it now! Don’t procrastinate, even if that means indulging in chocolates. (By all means, reward yourself with something wonderful after you finish.)
What is a money log? It is a record of ongoing expenses for a specific time period.
It doesn’t matter what format you choose. One friend used a detailed spreadsheet, and it worked for her. However, I knew that if I had to use a spreadsheet, I simply wouldn’t go through with it. Period!
Another friend started gathering her information but halted when her daughter said, “Oh mom, I have access to everything, don’t worry.” The daughter later regretted that her mom had paused, especially when, six months later, her mom suddenly fell ill and passed away within a year. A money log would have helped the daughter not only settle her estate but also manage a significant portion of it while her mom was still alive.
To begin your money log, first compile a list of regular fixed expenses, including relevant details for each. This information includes:
To whom do you pay?
What amount do you owe?
Where do you send payment?
When are they due?
How do you pay: online, by check, in cash, via bank withdrawal, Venmo, etc.?
How often do you pay?
I created a monthly list of all my expenses. This may seem redundant since some payments are necessary every month. However, a money log helps me because I know when significant routine expenses arise and need to be paid. Some months, I have more expenses than others, so I monitor my discretionary spending during those times. If anything happens to me, whoever takes over my bills will understand what needs to be paid now or in the near future.
Another benefit of maintaining a money log is that it helps you identify manageable expenses. For instance, this year I solicited several bids for lawn service and switched companies, resulting in significant savings.
Finally, a money log requires two additional actions to be effective. First, regularly review and update the log. Second, securely share it with the relevant individuals.
