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Sunday, November 9 2008

While you are reading this post don't forget that ...

By JF on Sunday, November 9 2008, 16:14

I've just start reading "The Black Swan" (Amazon sponsored linked). Actually, I am just about to finish the prologue. I am going to like this book.

Among other things, the author is demystifying the r"The Black Swan"ole and the knowledge of expert:

... certain professionals, while believing they are experts,
are in fact not. Based on their empirical record, they do
not know more about their subject than the general
population, but they are much better at narrating - or,
worse, at smoking you with complicated mathematical
models. They are also more likely to wear a tie.

So while you are reading this post, don't forget that in my everyday life, I have to wear a tie.

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Sunday, December 9 2007

Tracking your expenses

By JF on Sunday, December 9 2007, 08:00

How much are you sending each month? What is the minimum amount you require to live and what is the minimum amount you require to live comfortably? In a nutshell, how do you spend it?

I have been trying to answer this question for quite a long time for different reasons.

Pretty easy for all what you have paid with your credit card. Everything is recorded and usually the credit card company will give you csv, quicken exports. But you don't use credit card for everything:

  • It has a cost (I must have heard somewhere that credit card companies are taking 3% for themselves). In the end you will pay for it as retailers will have to take this into accounts when fixing prices
  • Not everybody is accepting it. Don't want to invest in the terminal
  • One's don't want everything to be tracked. (My "I hate big brother" side). You want to keep a bit a privacy and entrepreneurs want to have the opportunity to avoid taxes on some of their income.

When you come to tracking your expenses, using cash is a nightmare as you won't always have/keep a ticket. You need to record it while you can remember it (as soon as possible).

A quick and dirty but efficient solution is IMHO google spreadsheets. Create a simple spreadsheet and record as soon as you can your expenses in it. It is not the best solution but it is a good compromise:

  • Using [openoffice/excel/other accounting software] is not the right solution as it is usually stored on one computer. After a full day of work I have forget everything about these small expenses as lunch, newspaper and so on. I can access this google spreadsheet as soon as I want. Export is once a month to your favorite [openoffice/excel/accounting software].
  • I don't like the keep it on a paper solution (I usually lose it)
  • I don't like these new web application that are going to connect to your bank account and centralize everything. I think they are making data mining/profiling too easy and that giving them your passport is such a big security risk.
  • Keeping it on google is definitely not the best way to keep it private (which i think should be the case for all finance-related elements). But i think that the breach is limited with such a solution.

Google spreadsheet is free of use btw.

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