Now that we have discussed the concept of reconciling, it’s time to go over the steps. You can adapt these steps to work with whatever tool you use to track your spending and income.
Since I use YNAB as my tracking tool, I am going to show you how to reconcile using that software. But the principles are the same for any tracking tool.
I have come across numerous DA members who have never reconciled their income and spending with their bank account. So coming into DA, even though they have a spending plan and a tool for tracking their income and spending, they are vague about the accuracy of their tracking.
Note: The term “transaction” is used to describe any spending or income that occurs in your bank account. Each of these are examples of transactions:
- Spending $125 at the grocery store with a check
- An automatic debit of $1,000 to your mortgage company
- Your paycheck, which is deposited into your checking account
Unless you reconcile your tracking of actual spending and income with transactions in your bank account, there is room for a huge amount of error and vagueness.
Here are just a few examples of what might happen:
The desire to be comfortable gets me into trouble. I had to shift my thinking about this in order to stay abstinent with my spending. Abstinence and making the right choice are often not comfortable.
I remember many years ago in another fellowship, I was getting more and more restless, irritable, and discontented because I was suffering about something or other and no matter how hard and how much I prayed for comfort and relief, I was still miserable and the situation was still present.