Darrow Kirkpatrick has a new post out called Budgeting or Expense Tracking: How Much is Enough? This will be a short post. All I have to say is that while I do not do it exactly like Darrow and while I'd tweak it a bit, and while I also tend to go a little more custom via Excel, Darrow is 100% correct in both his method and his sensibility. Track expenses and net-worth -- these are the core family financial statements: income statement and balance sheet, preferably an actuarial balance sheet. Do this consistently but not obsessively and do it at the right level of granularity ... and much of the retirement-finance universe seems to fall into place.
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