The Rules of the ABCs Method

Rule 1: Reconcile First

Always reconcile your accounts before making budgeting or spending decisions. Planning based on an incorrect balance leads to inaccurate financial decisions.

Rule 2: Plan Before You Spend

Record known income and upcoming expenses in your ledger before they occur. Planning transactions ahead of time allows you to see how your money will move through the month.

Rule 3: Watch the Flow of Money

Your running ledger balance provides insight into your financial future. Pay attention to how your balance changes over time and adjust your spending decisions accordingly.

Rule 4: Save with Intention

Savings should be a deliberate decision based on your cash flow visibility. When you understand how money moves through your accounts, saving becomes easier and more sustainable.

Rule 5: Review Regularly

Review and reconcile your accounts frequently. Regular review keeps your financial records accurate and ensures that your plan reflects your current reality.