There are so many different personal budgeting plans out there that it would be impossible to show each one. However, the best one that I have found so far comes from the author Harv Eker, in his book “The Secrets of the Millionaire Mind.” Now I have revised my budgeting plan a little to deviate from his but, if you wanted to get the foundation from which this plan has sprung then read his book, I know that you will thoroughly enjoy it. Every time I receive a paycheck I manage that money. I separate that money into 5 different categories that are determined by percentages. Here are my 5 different categories but remember this is the goal so do not be discouraged if you are unable to live on these percentages. If you are unable to live on my percentages I explain how you can begin to at the end of my article.

Ø 60% Daily Living

The purpose of the Daily Living Account is to account for the everyday expenses that are a part of your life and mine. The expenses that draw from this account include: taxes, necessity clothes, groceries, pet food, mortgage payment, rent, utilities, insurance, offering (any amount given to the church that is over 10%) gas, allowance, haircut and nails (ladies only minimum to get the job done), gasoline etc. This does not list them all however, the list provides you a good idea of what you can and cannot call your Daily Living items. When you are spending 60% of your income on daily living necessities you will have the peace of mind that comes from not overspending while being able to secure a future for your family through proper savings.

To calculate your Daily Living account take the Gross Income (income before taxes) multiplied by 60% (or .60) then subtract your taxes (which will be listed on your paycheck) from that total and the amount left is the Daily Living Account total.

o (Gross Income x 60%) – (taxes) = Daily Living Account

Ø 10% Tithe

The purpose of giving the tithe is to increase intimacy with the Lord and giving ensures both spiritual and financial blessings. Here are some biblical references to back up what I am saying: Matthew 6:21, Proverbs 11:24-25, Acts 10:4. Depending on when you receive a paycheck will depend on when you pay your tithe. But regardless of when you are paid the tithe should be paid to the church on the vary next service.

To calculate how much your tithe would be take the Gross Income (income before taxes) multiplied by 10% and the amount that is left is the Tithe Account total. The tithe is taken out before taxes because the taxes are paid by the Daily Living Account.

o Gross Income x 10% = Tithe

Ø 10% Investment Account

The purpose of the Investment Account is to create enough residual income that will pay for all of your living expenses and will afford you the type of lifestyle that you desire to live. Residual Income can be defined as the money that is earned when you work one time and get paid over and over again for that time that you worked. Sounds pretty good, huh? Once this money is deposited into your Investment Account that money can never be touched again unless it is being invested in opportunities that is going to create residual income

To calculate the amount that goes into your Investment Account take the Gross Income (income before taxes) multiplied by 10% and the amount left is the Investment Account total. Again this amount is taken out before taxes and will equal the same amount that was given for tithe.

o Gross Income x 10% = Investment Account

Ø 10% Play Account

The purpose of the Play Account is to give you a guilt free release where you can spend money now like the financially free, wealthy man or woman that you are going to be. The Play Account will allow you the freedom to spend this money on activities that will make you feel wealthy such as:

§ Going out to eat at the best restaurant in town and then leaving a tip that is the same amount as your bill

§ Take the family out to the movies and buy popcorn, sodas, candy and do not think about how much these items would costs if they were purchased at Wal-Mart

§ Buy four more pairs of shoes that you do not need

§ Buy one shirt that is 5 times more expensive than the highest priced shirt in your closet

However, the money in this account must be spent each month. You are not allowed to save any money in this account for the next month, you have to spend it all. But, on the other hand you are not allowed to spend a penny over the amount that you have allotted for.

In order to calculate the amount of money that will go into your Play Account take the Gross Income (income before taxes) multiplied by 10% and the amount that is left is the Play Account total. Remember…do not spend wisely.

o Gross Income x 10% = Play Account

Ø 10% Long Term Play Account

The purpose for the Long Term Play Account is that it allows you the freedom to spend your money on items that are to expensive for your Play Account and that might tempt you to “loan” from your Investment Account. Examples for the Long Term Play Account are a flat-screen television, jewelry, family vacation and motorcycle; just be creative and think about the things you have always wanted to have and do but could never afford. But as a word of warning whatever you buy make sure that it does not cause your living expenses to exceed the 60% that you have set aside for your Daily Living Expenses.

To calculate the amount that will go into your Long Term Play Account take the Gross Income (income before taxes) multiplied by 10% and the amount that you have left is your Long Term Play Account.

o Gross Income x 10% = Long Term Play Account

There was a great response of people who replied to my post regarding a personal budgeting plan however, several people inquired about different scenarios surrounding my budget plan. The two main questions that I am going to deal with today is how to calculate your daily living expenses and what to do if you cannot afford to live off of 60% of your income? Enjoy and keep the questions and comments coming.

How do I calculate my daily living expenses?

List everything that would be considered your living expenses and then add up the totals. This is a confidential exercise, therefore, you are not obligated to show your living expenses to anyone so be honest about your current situation. Again, be sure to list ALL of your necessities! The purpose of finding out how much money you spend a month is so that you will know exactly how much money you need to survive. That figure is the most important because that is the building block that we are going to establish your budget around. Courage is needed to face up to your financial situation because sometimes that process can be intimidating. However, if you are able to push past your fears and you will find that the process will carry lasting financial rewards. Be sure to calculate all the totals for the month. Here is a small list to help you get started:

o Minimal balances due on your credit cards

o Mortgage/Rent

o Cell phone bill (then be sure not to tally up extra charges)

o How much you need to spend on groceries

o Utilities (allow for some fluctuation)

o Take your time and use the previous list for assistance be sure to list everything

What if my daily living expenses exceed 60% of my income?

Start where you are. 60% is the goal that we are going to work towards. Do not feel discouraged about not being able to live off of the 60%. In 2004 a study was done by the Federal Reserve that showed that Americans spend (after taxes) $98.20 out every $100 they make and further studies have shown that Americans spent even more in 2005. If we implemented our budgeting plan with the average American in 2004 that would leave roughly 2% their paycheck to be divided among the rest of the other 4 accounts.

Let’s say that you make $3,000 per month and your necessities add up to $2,400 which is 80% of your income. Remember that our goal is to live off of 60% of $3,000 which is $1,800. Now that you know where you are, and where you want to go you can begin to work towards that goal. Just remember to be patient with yourself while you are working towards that goal.

Sticking with the hypothetical situation let’s begin to manage the rest of your finances. Because we are left with 20% of your paycheck we have got to decide how we are going to budget the rest of your finances. Out of the four accounts that are left you have two investment accounts and two play accounts. The tithe is the most important account because spiritually saving and investing is only permissible when we are giving (Luke 12:16-21, 34) Therefore, after you take out $2,400 for necessities add another $300 dollars for tithe and place the $2,700 into your checking account. Then give that $300 in the next service. Next put 5% or $150 into your Investment Account and pull out $150 in cash so that you can go out to eat and other activities that make you feel wealthy.

Here is a breakdown of the proposed budgeting plan:
  Actual Goal
· Daily Living 80% 60%
· Tithe 10% 10%
· Investment 5% 10%
· Play 5% 10%
· Long Term Play 0% 10%

Again, do not let where you are financially get discouraged. When you know where all of your money is going, you will notice that your finances will begin to increase and your life will become less stressful. No longer will you say, “Where did my raise go?” or “It seems like every time that I begin to cut back on some of my expenses the money just gets swallowed up by life and extra bills.” Imagine what your life would be like if you lived on 60% of what you made. Think about the amount of stress that you would rid yourself of and how emotionally free you would feel. That is the power of properly managing your money and your life. But allow me to warn you that this process is not going to be the easiest thing that you have ever done. Through the process of delayed gratification you will have to cut out all the unnecessary expenses in order to reach the goal of 60%. You will have to be disciplined because there will be numerous opportunities for you to rob yourself of freedom by “loaning” from one account to increase another account. 60% in your Daily Living Account is a feasible goal; however, you must have a strong desire to accomplish it. As the old saying goes, “Where there is a will there is a way.”

What if I cannot afford my tithe?

I believe that the only reason why individuals do not give is due to the misinterpretation of the information that they have received. For if a person truly understood the importance of giving the lack of money and resources could not stop them from not only giving but giving abundantly. There are several benefits of giving and allow me to list a couple for you before we move on. First, God promises to reward those who are faithful in their giving (Proverbs 11:24-25). Secondly, giving increases your intimacy with God for Matthew 6:21 says, “For where your treasure is, there will your heart be also.

Jim Elliot, a martyred missionary, said, “He is no fool who gives what he cannot keep to gain what he cannot lose.” Meaning, the money and resources we receive while we are on this earth cannot be kept when we go into heaven. However, God promises us blessings in heaven for what we give on earth. Sounds like a great business transaction to me.

The Bible “… does teach us to give in proportion to the material blessing we have received, and it especially commends sacrificial giving. What I like about the tithe or any fixed percentage of giving is that it is systematic, and the amount of the gift is easy to compute. The danger of the tithe is that it can be treated simply as another bill to be paid. By not giving out of a heart of love, I place myself in a position where I cannot receive the blessings the Lord has designed for a giver. Another potential danger of tithing is the view that once I have tithed, I have fulfilled all my obligations to give. For many Christians the tithe should be the beginning of their giving, not their limit.” (pg. 78 Your Money Counts, Howard Dayton)

Throughout scripture God promises to bless those who give with a cheerful heart. My experience has proven to me that the reason why individuals do not give is because they do not understand the principle. Do not consider giving, as though you are losing money or that the payment to the church is another bill. The tithe is deposited to God’s spiritual bank which is the church. The spiritual works just like the natural, where you deposit you may also withdraw. The Bible declares in Mark 4:8 that the minimal return you can get from giving is a 30 fold return. 2 Corinthians 9:6 says, “…he that soweth sparingly shall reap sparingly and he that soweth bountifully shall reap bountifully.” (Disclaimer: that does not mean that you can always expect a financial harvest in return for what you give or that you can demand that the church pays your bills if you get into financial problems.)

However, in all of our giving we must submit our feelings to wisdom. At times God will speak through your pastor asking the congregation to give a specific amount of money. If you do not have the money in your account to give then God is not speaking to you. And just because you might have the money in your account does not mean that you are at liberty to write the check. For if the money that is in your account is set aside for bills, that money is not yours; it belongs to the electric company, the cell phone company etc. Not only does God not bless those gifts (Matthew 15:4-6) but you will not have the money to pay your creditors.

Historically and presently secular organizations and pagan religions have understood the importance of tithing. The government rewards you through tax deductions while the pagan religions from the past paid tithes to their pagan gods. King Demetrius of Syria commanded the Jews to pay a tithe, in honor of his god, in addition to the taxes owed to him while they were under Syrian rule. Herodotus recorded that the Greeks, “having brought all the loot together, they set apart a tithe for the god of Delphi.” Even these secular nations gave a tithe of their earnings and spoils of war as an act of worship. How much more should we give to a living God who gave His Son for us?

I do not make enough money to follow this budgeting plan

Most people do not believe that they have the money because they do not know where their money is going. David Bach introduced a way of finding where that lost money went, through a principle called the Latte Factor. Individuals who say I do not have the money to give or the money to invest Bach would ask them a series of questions. He would ask, “When you wake up in the morning do you brew your own coffee or do your purchase your coffee? Do you purchase a bagel or doughnut with your coffee?” Let’s say for breakfast you purchase a coffee and a bagel for $5 and that purchase is repeated Monday through Friday. That $5 means you would spend $25 per week, $100 per month and $1,200 per year just on breakfast! If you invest your breakfast money for the next 20 years at 10% interest you would have over $100,000 in the bank. We are literally eating away at your family’s financial freedom.

For your benefit here are some examples of the Latte Factor: weave, nails, golf, fishing, eating out, magazine subscriptions, memberships, on sale items (or the deals that you just cannot pass up).

How do I implement this budgeting strategy in my life?

1. First thing is first, you will need a checking and two savings accounts. However, if there is a charge for the second savings account you can get by on one but you will just have to do a little more tracking.

2. If possible have your paycheck automatically deposited into your checking account this is much more convenient, saving you time and money.

3. Next, deposit the Investment and Long Term Play Accounts into your saving account(s). Remember the total amount that will be deposited is 20% of your paycheck before taxes. If you can get two savings accounts then have the bank to automatically withdraw your Investment Account into one savings account and your Long Term Play Account into the other savings account. If you can only open one savings account without a monthly maintenance fee then add the two accounts together and have that dollar amount automatically withdrawn from your checking when your paycheck clears

4. Your Play Account will be withdrawn from your checking in the form of cash. So the amount of cash that will be withdrawn is 10% of your paycheck before taxes. This will be the only cash that you carry so when the cash is gone your play account is broke. By carrying cash you relieve yourself from having to track and remember all of the money that you spent to have fun, which makes the process even more fun. Keep in mind that this account must be spent every month and you cannot add to this account by borrowing from your next paycheck. In other words when your cash runs out, your play time is over.

5. Daily Living and Tithe Accounts make up the total remaining in your checking account. At the very next available church service pay your tithes. I prefer to do this by writing a check so I do not have to mix this money with my play money and so I can check for accuracy at the end of the year. However, if you are not a check person withdraw the cash when you withdraw your play money but just be sure not to spend that which is intended for giving.

6. The remaining balance in your checking account after you have paid your Tithe is the amount that you have to live on until your next paycheck. This amount should equal that which you have budgeted for your Daily Living Account. Now just manage your account carefully and be disciplined not to overdraft or to borrow from the other accounts.

Most of my expenses are in the beginning of the month and I get paid every two weeks. Can I use my first check for my Living Expenses Account and then use my next check to make up the difference between my other accounts?

No, you must learn balance in every area with every paycheck. What you are asking is, “Can I borrow from my other accounts on this paycheck and then I will borrow from my Daily Living Account on the next paycheck?” Think back to when you went on a diet. The first time you took a bite of that chocolate pie was the hardest to overcome. The war within you was intense. However, when the second opportunity for pie came around you thought to yourself, what diet? The same is true with budgeting. If you attempt to break the rules once there will be a great war within you. The second time…what budget?

Do the budgeting rules change if I am married?

I would not change the rules if I was married but the process would have to change some. Implement the same plan with the same percentages; however, you would just have to have a joint checking account for the Daily Living Account and a joint savings account for your Investment Account. But, I would maintain a separate checking/savings accounts for your Play, Long Term Play, and Tithe Accounts. But, keep in mind that the process will vary according to family structure

If I do not receive a regular paycheck should I still follow the same budget format?

Yes. You need to follow this system even more strictly for you do not know when you are going to receive your next paycheck. Therefore, managing your money becomes more of a necessity and less of a luxury.

How do I know that this budgeting plan is going to work?

The budgeting plan is like any well thought out plan. It will work if you work it. Try this plan for 30 days and in the process the plan will prove itself. Or at least try this method until you find a better one that works for you and your family.

How do I reduce my debt from this system?

What you focus on expands and I want you to focus on becoming financially free, not debt free. Therefore, my first priority is to build your Investment Account not to reduce your debt. The law of God is that to him that has more will be given. Matthew 25:29, “For to everyone that has shall more be given, and he shall have abundance.” Like the parable, as your Investment Account grows God will begin to add His blessings to your efforts. (Matthew 13:12, Mark 4:25)

The second priority of this budget is to teach you how to control the amount of money you are spending. Debt is the cause of the deeper issue of overspending. Even if I was to pay off all your bills today, tomorrow you would begin to work your way back into debt because when you overspend debt is the natural byproduct. First we must downsize your lifestyle to a place that you can afford to live. Once you are living that lifestyle then we can begin to attack your debt.

We can only attack your debt when we know how much you owe and who you owe the money to. In order to get an accurate assessment of your debt collect the balance owed and the minimal payment due to all your creditors. (You should have all of the minimal payments due when you calculated your Daily Living Account)

Once all of your debt has been listed consider some options to remove the pressures that debt causes. The top 2 reasons individuals cannot live comfortable on their current salary is because they own either too much car or too much house. Consider selling your house and downsizing or even renting for a time period or selling that second car until you get back onto financially stable ground. These are great sacrifices but keep the objects in proper perspective. The house and cars are only things and though there are emotional attachments, these things may be hindering your marriage and causing unwanted stress. At minimum consider lowering the minutes on your cell phone, having basic cable, consolidating credit card debt or requesting a lower interest rate. You can lower the interest rate on your credit card by telling the credit card company you are going to move your balance to another card if they do not lower your interest rate. When I had credit card debt I did this and lowered my interest rate from 18% to 3%. What a difference a call can make.

Now once the first two priorities are implemented we can begin to combat your debt. Once you are paying the minimal balances on all your debts then, starting with the smallest debt, Debt A, double your minimal payment or as close as your budget will allow. This will aid in paying off the debt at a faster rate causing you to save money that would be spent on interest and gain peace of mind. Apply the extra amount in addition to the minimal payment only on the Debt A, while you are continuing to pay the minimal payment on the other debts. Once Debt A is paid off, add the monthly payment that you used to pay off Debt A and apply that amount on top of the minimal balance that was being paid to the next smallest debt, Debt B while continuing to pay the minimum payments on all of the other debts. Once Debt B is paid in full take the total monthly amount that you were paying against Debt B and add the minimum balance of Debt C until every debt is paid in full. As soon as those bills are paid in full I would begin adding the money being paid on the debts into my Investment Account.

Can I use my other accounts to pay off my debt?

When you take from other accounts to decrease your debt load at a faster rate, though your intentions are noble, you are inviting disaster. Wisdom is maintaining balance in every situation. If you are dieting, nutritionist do not advise you to starve yourself in order to lose the weight faster. If you did starve yourself in the beginning, when you begin to eat again overeating will be assured and your body would store all the food that you ate. Likewise, when you start spending after being on a strict budget where no excess spending is allowed you will either overspend (like you would overeat) or spend grudgingly (like your body storing everything it receives.)

This budgeting plan is a perfect mix of savings, living and play. The plan allows for the flexibility to track every dime that is spent or not to but either way the budget works if you work it.

What about an emergency account?

Setting aside money for a rainy day or an emergency are wise acts to do, however, do not name the account “emergency” or “rainy day.” For what you speak about you bring about. If you are saving up money for an emergence then an emergence is going to happen. Have you ever had that friend who always says, “I have the worst luck in the world?” When you look at their life you think to yourself, He really does have horrible luck.” This is a classic example of speaking your current situation into existence. As the Bible says in Proverbs, “Death and life are in the power of the tongue and those that love it shall eat the fruit thereof.” Change the name of the account to Surplus instead emergence. After all this account is going to be built through your surplus and since you are going to speak something into existence it might as well be in your favor.

To build your Surplus Account take 5% of the 10% that we have set aside for your Long Term Play Account and add that with the “surplus” from the Daily Living Account to make up your Surplus Account.

If you are currently in a position where you do not have room in either your Long Term Play or Daily Living Account then we are going to have to use your Play Account. The Surplus Account is important for the security of your family; therefore, some short term sacrifices are going to have to be made. You still need the release of some play money because let’s face the facts, all savings with no play…no way. But you are going to have to cut back on the amount that you do spend in your Play Account. If you could not afford the 10% for the Play Account then whatever percentage that you budgeted for will be cut in half. Half of the Play Account will go into the Surplus Account until you have saved up 3 to 6 month’s worth of expenses. While you are saving up the money for the Surplus Account, if your budget reaches our ideal percentages then begin to take 5% from your Long Term Play Account until the Surplus Account reaches the desired amount. Some people ask if they can just transfer the Surplus Account out of their Investment Account if an emergency comes up to which I always advise against. When you do something once, that same action becomes much easier the second time. Do not withdraw any money out of your Investment Account other than for residual income opportunities because before you realize you will start taking loans from the Investment Account, then spending freely from this account until there is nothing left.

Our first goal for your Surplus Account is to save one month worth of expenses. In order to calculate one month worth of expense use the calculations that you made for your Daily Living Account. Once you have equaled that amount in savings then you have reached our first goal. Our next goal is to have three months worth of expenses in an easily accessible savings account. To come up with this number take the amount that you calculated for the Daily Living Account and then multiply by three. Once you have reached this goal if you do not feel comfortable with 3 months of expenses in savings then our last goal is to save 6 months of daily living expenses. To come up with 6 months of expenses multiply your Daily Living Account by 6. Having 6 months of expenses in a savings account will provide enough time to adjust to most every situation that is thrown your way. Money that is saved on top of this amount can be used for investments that will yield higher interest rates and will help us reach financial freedom faster.

Which account do Christmas, Birthday and Anniversary Gifts come out of?

When I begin my year I estimate the amount of money that I am going to spend on Christmas, birthday, and anniversary gifts. At the end of every month I have a remaining balance that is carried over into the next month and used for birthdays, anniversaries and other holidays. However, if I want to give more than what I originally budgeted for then I dip into my Play Account to offset the extra money I spend on gifts. The Play Account is used to make you feel wealthy and that is the feeling that comes over me when I give.

“When you know how much you have to spend on gifts, make a list of everyone you are buying for on the outside of an envelope and put a dollar amount by every name. The total amount you want to spend cannot exceed your budgeted amount. Put the amount of cash you are going to spend for the gifts in the envelope. Use the cash for every gift and when the cash is gone, STOP SPENDING. Remember if you overspend on Aunt Teresa, Uncle Joe won’t get a gift. Stick to the budget!

When you’re doing your normal written budget – the one you do every month before the month begins – remember there are added expenses during the holidays. If you’re taking your famous green bean casserole to 15 Christmas potlucks, you’ll have a larger grocery bill – add to the budget. If for the past 10 years you have fallen off the ladder hanging lights on your house, budget for the emergency room visit. Sit down and think for a minute about the expenses you normally have during the season and plan for every one of them.

If you looked at your monthly budget and there is nothing left over for Christmas gifts, you are not a bad person. God did not say in 2 Hesitations, “buy stuff on Jesus’ birthday.” This is a season to get together with family and celebrate the birth of the Savior. Don’t spend money you don’t have and go further in debt. Stick to your budget and keep working on your money makeover. Down the road, when you have control of your money, you’ll be able to buy the gifts you want to give” *

Do not overspend on gifts. Sometimes people get into the holiday spirit and they just spend more money than what they planned on doing. If you cannot pay for the money with cash do not purchase the gift. Statistics show that people spend 33% more when using a credit card than when they use cash. In my experience credit cards mixed with holiday cheer equals a lot of sorrows when the bills come in the New Year.

* “Lose those “January Bills Blues”” written by Dave Ramsey

When should I begin to teach my children to start managing money?

Principles such as budgeting and investing are not taught in schools. So if you do not instruct your children how to manage their money who will? Teach them how to budget when you begin to give them an allowance, or when they start getting get paid for chores.

Teach them to manage every dollar they receive and when they get older money management will not be a problem they have to deal with. The Bible says, “Train up a child in the way he should go, even when he is old he will not depart from it.” Proverbs 22:6

Should my children use the same budgeting plan that I do?

No. Due to your children not having any living expenses and because you want them to enjoy the budgeting process you should focus on rewarding them, while helping them build the habit of savings. Below I have laid out the budgeting plan that I recommend for them to get started on. I have compared their percentages to yours so you may have a better idea.
  Child Adult
· Investment 30% 10%
· Long Term Play 30% 10%
· Play 25% 10%
· Tithe 10% 10%
· Daily Living 0% 60%

How do I balance my check book?

Some people know that they are having financial problems but do not accurately understand their situation because they do not know how to properly balance a check book. Closing your eyes to the situation will not change the reality of your circumstances; the unknown only tightens the suspense. Our financial plan that has been laid out for you was created to minimize the amount of calculating and recording that was needed. In our fast pace society the last thing we want to do is track down a bunch of numbers through the process of recording and gathering receipts to see where our money is going.

When you budget your monthly necessities you will never have to worry about being overdrawn as long as you do not exceed those expenses, therefore, you can track your spending online. Through most online banking sites you can pay your bills and if there are any complications you are given a confirmation number and the date which the money was withdrawn. You can check your account daily to see checks that are pending, deposits that have cleared while the computer calculates your account balances for you. The process is so much more convenient than the paper trail of your check book but I know from experience that the process of online banking can be a little intimidating because we fear that which we do not understand. To begin the process go to your bank’s website and by using your account number you can open up an online account within minutes. However, if you encounter any complications call their customer service department and ask for assistance. How to use online banking will vary however, the process is really very simple. Once you register, sign in and begin checking withdraws, deposits and your account balances.

When using online banking to track the balance in your checking account use your debit card instead of a check whenever the option is available. Purchases on your debit card will in most cases deduct instantly from your checking account which will make your available balance easier to track.

Next, use cash over a check when using online banking. Sometimes people hold on to checks for a while before cashing them and if you forget that you wrote the check you will think that your balance is higher than actual and that could lead to overdraft fees and at the least disappointment when you realize the reality of your balance.

If the internet still scares you and you just refuse to figure out how the thing works then stick with your check book. Using online banking over the checkbook is not the important issue. The important issue is what works for you and are you working that method. The common mistakes people use when balancing their checkbooks is they do not deduct debit transactions, they delay subtracting the purchase that they made from the total in the checking account, and they make mathematical errors. Overcome these common stumbling blocks and you will never have a problem with accuracy.