Dear M.:
If you use Quicken, make sure to set up online banking with your accounts and to autoreconcile. You can do the reconciliation manually, and I think it prompts you to do it automatically later. Once your accounts work and reconcile, you should have a good starting point. Now my trick to keep track is to put items ahead of time when you expect them. You can adjust or delete them later, but that way your bottom line shows you how much you really have available while your online balance shows a (somewhat meaningless) current balance.
For example, you have balance 3,000 and your mortgage of 1,200 is due on the first of next month. By putting in an item dated 1/31/08 for 1,200, you will see a current online balance of 3,000 but a bottom line of 1,800. When the mortgage posts, you can remove it or push it up to the next month (and repeat the game). If you can afford it, you can try to save up the next month's payments, so you never have to worry about having the cash then. It may take a while to get there.
For credit cards, you may put an item for $300. Suppose the bill comes in at $200, then your bottom line actually gains from your projected cost, if it is $350 you will have 50 less than planned. Either way, the bill does not hit you like a ton of bricks. If you get really good at it, you can update that projected cost with a tally of what you actually spent. I am too lazy, so I put an estimated amount.
Do the same with all other big items. My main point is that this shows you the ACTUAL bottom line until your next paycheck, so unless unforeseen things happen, you are not 'blinded' by a higher balance early in the month when you see what will be left at the end. BTW, likewise I put projected savings on my savings account, so I can save up for something and still know how much I have at my disposal. For example, I make a 'pseudo car payment' there where I put a few bucks each months to save for a downpayment when my current car gives up... When my real car payment is over (and if my car still runs), I will continue to 'pay' those payments into that bucket until I need it.
If you write a check, you can track it with the check number (the reconciliation will find it) and the EXACT amount. If you don't remember the number or the exact amount, create an estimated entry. Then after the download delete the entry when the real one posts. Any guess is better than a surprise when a check comes in.
Finally, the benefit of putting those blocks into the future is that you start balancing your bottom line, not a zero balance in the account. You will see that you are less prone to bouncing checks, because you maintain a certain buffer. Financial gurus will point out the low or no interest rate of that buffer and call it a bad way of putting money aside, but for balancing purposes this is easy and works well.
Sorry for the long reply,
W.
P.S.: If this was unclear, send me a personal message.
