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Counting the Same Money Over and Over

Do you ever count the same money over and over again?

This is a horrible habit I have been adopting ever since I began working from home.

Allow me to give an example of what I am talking about.

Counting the Same Money More Than Once

  • Let’s say I complete a project for $250.
  • As soon as the campaign is done I mentally add $250 to my bank account.
  • Hubby says something like, “We need a new soft serve ice cream maker.”
  • I reply with, “Hey, no problem. I just made $250”.

Once I am actually paid for the project and have it in my account this process seems to happen again.

  • I physically add the $250 to my bank account.
  • Hubby says something else like, “You know we could really use a marshmallow rocket launcher.”
  • I eagerly chime in with, “I got it! Just got paid $250.”

Boom. Money just spent twice.

That is how I count the same money over and over.

It’s not wise. It can get you into trouble.

Sometimes I go a step further and count the money a third time if I know a project is looming.

So, that’s just “possible” money…and that’s when I really suck at life.

Quickbooks


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How to Stop Double Spending your Earnings

Obviously, this is why bookkeeping is so important.

The sooner you properly manage your side hustle earnings, the better.

If something like Quickbooks is not yet in your budget, you can create a system that works for you using Google Docs, or even a planner.

An easy way to track income using the same line of thinking as above would be to list the project, amount, and then the following check boxes:

  • Pending
  • Completed
  • Paid

Check the boxes as the project progresses. Only count it as actual income once it’s paid and in the bank!

You can do this on Excel or use paper, as well. Again, it’s all about the system that works best for you.

Now that I incorporated my business, I don’t have a choice but to keep accurate books, but in the beginning that was not the case.

There were a lot of other issues back when I didn’t have a good bookkeeping system, too.

I didn’t have an accurate amount of what I was earning, I didn’t track past-due invoices (which, I am sure, some were never paid!), and everything for the business was jumbled with personal giving no clear picture of how I was doing.

When you decide to start a side hustle, try to make an income tracking system that works for you right away.

If you are like me and enjoy trying many work from home gigs, even separate each one so you can see which ones are worth your time.

It will save you some headaches, help you come tax-time, and stop you from double spending like I was!

Note: We don’t buy such randomly strange items. They are just what popped into my mind while writing this. The rest of this post is quite accurate.

Jar full of change sprouting a plant.

Can you relate to counting the same money over and over?

How do you manage your money responsibly?

Kayla @ TheEclecticElement

Thursday 20th of February 2014

I unfortunately am guilty of doing this sometimes which is why I'm trying to put together a spreadsheet in Excel, too, to keep track of what's coming in, what is owed, and for tax purposes at the end of the year!

Organization is always the key :)

Jennifer

Friday 21st of February 2014

So true! It's definitely a bonus having it all ready come tax time. I would hate to be scrambling even more right now to get our stuff together!

Ashley Sears

Wednesday 19th of February 2014

That is something that is so easy to do. I keep a spreadsheet in Excel of all the incoming money that I am expecting, and not foolproof it has helped with this a bit.

Jeannette

Wednesday 19th of February 2014

Haha - I do the same thing - I've stared using a spreadsheet where I mark complete and then paid - that way I don't spend it twice and don't actually add it into our funds until it is in our account.

Anne

Wednesday 19th of February 2014

I do this too! And of course part of the money has to go for taxes, so if you spend it all (twice) you really end up in the hole. I am trying a budgeting app on my phone to see if I can manage my finances better.

Jennifer

Wednesday 19th of February 2014

Yes, that is so true! I hadn't thought of exploring my app options. What a great idea.

Little Miss Kate

Wednesday 19th of February 2014

We only spend what is actually in our bank account, not what is coming in. It is the only way for me to stay organized.

Jennifer

Wednesday 19th of February 2014

Very smart of you!!!