01-30-2014, 10:19 PM
Wailer wrote:
I can't believe I used to do credit card transactions by hand for the first 10 or so years (yes, I'm that exciting to talk to at dinner parties). Back then I would separate things into discretionary and non-discretionary and call it a day. It didn't give me much granularity, but it was useful to know how much I was spending on needs vs wants. It gets tricky when I would buy higher quality food and booze at the grocery store for entertaining. Even now that I can download transactions and 95% of my purchases are from the same vendors, I try to keep it simple. For instance, I lump water, gas, electricity into the same "utility" category but separate from telephone, cell, internet and satellite; the first one I could never really eliminate and the second one I could easily cut back on if needed. Likewise, Costco, TJs, Kroger and Whole Foods are all the same "grocery" even though I might by a 6-pack of surfboards at Costco. The upshot: Fewer categories is definitely easier but gives you less granularity. It's definitely a balance. Any, I've digressed. Again.
you and i would have wonderful dinner conversations! and i also, as i've aged, have opted for a bit less granularity.