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Emerson Publications
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You have permission to publish this article in its entirety as long as the bylines are included. A courtesy copy of your publication would be appreciated. Please inform writer of your use. mailto:joyce@emersonpublications.com
Tracking Your Purchases – 900 words
Try to picture this. You’ve just been notified that your house has burned to the ground. Everything is gone – furniture, clothing, photo albums. You can be grateful that no one was home and no lives were lost, but the shock of your loss is overwhelming. You may think that if your homeowner’s or renter’s insurance covers the contents of your home that the insurance company is just going to write you a check for that coverage, but that may or not be the case. More than likely, you’re going to have to provide a list of what you’ve lost before you will be reimbursed.
You gather your family and try to think of everything that was in your house. It’s not too difficult to cover the big things because you can visually picture them – tables, chairs, couch, beds, dressers, etc. But what about the things that are tucked away in cabinets and drawers? When it’s time for spring cleaning, we all discover things we’ve forgotten we ever owned! Just imagine how many things you have that you’d never be able to recall if you couldn’t picture them? No doubt we all have things that we probably wouldn’t care to replace, but we should be reimbursed for their loss, anyway.
There are several things you can do to protect yourself before you are in this situation.
1. Photograph it. Years ago, it was safer to video the contents of your home because the film didn’t have to be developed. It wasn’t safe to take photos of everything you owned and then take it to the local photo shop. It’s like setting yourself up for a robbery! Today, with digital cameras, you can snap away and then save the pictures to a CD. Be sure to open cabinets and drawers. Don’t forget nooks and crannies! 2. Keep receipts. Each year I set up a folder for receipts. In this file I place receipts for everything I buy. At the end of the year my “Receipt” file goes into a file box with everything else that’s used to prepare our taxes. Before putting the receipt in the file, make a note it to itemize the items (unless the cash register tape is descriptive enough for you). 3. Scan receipts for major purchases. If you’ve bought a refrigerator, a television, or new living room furniture, scan the receipt and save it to a CD. It doesn’t hurt to have backup. When I go on vacation, I carry this CD with me – just in case the house burns down while I’m away!
Just taking these steps will help you get started, but you can do even more if you have a computer. When I bought my first computer, it came with software for managing my finances. In the beginning, I used it only as a way to track my income and expenses, but over the years I’ve learned that it has much greater uses.
1. When I make a purchase, before I file it (see Step #2 above), I record it. Whether it is paid for by credit card or check, I itemize the individual things that were purchased. My entry might look something like this for Wal-Mart. Be specific enough that it will trigger a memory when you look at it later.
1. When I make a purchase, before I file the receipt, I record it. Whether it is paid for by credit card or check, I itemize the individual things that were purchased. My entry might look something like this for Wal-Mart. Be specific enough that it will trigger a memory when you look at it later.
2. Because I have to enter a date and the payee, this will tell me where I spent the money; how much will be deducted from my checking account (or added to my charge account); and give me a breakdown of every item purchased 3. If my purchase was made with my credit card, I look at the balance of the credit card at the bottom of the ledger, and make an entry showing the entire balance coming out of my checking account on the next due date. I know that my credit card payment is always due on the 7th of the month, so if I’m logging purchases made in June, I show this payment coming out of my checking account on July 7th. If all of them don’t hit the credit card in that time, then I adjust the balance when the statement comes in, and move the rest of the balance to the next month. This way I always know how much I have coming out of my checking account. This helps me to budget because there are no surprises when the credit card bill comes in and I can forecast for the future. 4. Be sure to back up your program on a regular basis and keep a copy of the backup in a safe place. This is a great way to track expenses not only “in case of fire” but also to help you look at your spending habits and see where your money is going. It is worth whatever effort you can make now, while you have access to receipts and documents, to record the information. Maybe your house will never be burglarized or never catch fire. I hope that’s the case. But if you’re the one who does suffer the loss, wouldn’t it be nice to be prepared?
Copyright 2003 Joyce Moseley
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