How to track/record investment, expense & savings ?

POSTED BY Bhavesh Furia ON March 29, 2014 10:08 pm COMMENTS (4)

I was reading this article – and got confused a bit about tracking investment

Taking an example of a person earning 1000 Rs./month, how he should record his expense, investment & savings for following scenario

1) 100 Rs. in FD

2) 300 Rs. for food, clothing, shelter and other expenses.

3) 100 Rs. in Savings account

4) 100 Rs. in PPF

5) 100 as some Loan EMI

6) 300 Rs. in equities

* How should be the investment in PPF / Equities / FD and its return be tracked/recorded ?

* How will be the breakup of Principal + Interest be categorized ? OR

* Should all investment be considered as -ve and Principal + Interest be considered as +ve ?

It would be great if any one can give me visual example.

4 replies on this article “How to track/record investment, expense & savings ?”


    Dear Bhavesh,

    I use Tally package for all my daily cash book, bank book and Accounting. I can see my balance sheet and Income and Expenses Account. You can set Budget also and track expenses. It is very easy and user friendly. Still little accounting knowledge will be useful. For tracking investments I use Perfios. But the problem with perfios is there is no portfolio allocation to specific goals.
    As of now I am comfort with this.

    Thank You


  2. ashalanshu says:

    Dear Bhavesh, just from an entry point in books of account, any money going out from your pocket, should be counted as negative and any money coming in or due to come in, should be counted as positive. Same thig is applied when we calculate XIRR.



  3. ashalanshu says:

    Dear Bhavesh, do you really need to check your investments’ performance on mly basis?



    1. Bhavesh Furia says:

      No Ashal bhai, I want to track only my INCOME & EXPENSES on monthly basis.

      I want to know whether investment should be considered as expense and should its return (Principal + Interest) be considered as INCOME or there is still a better way for recording ?

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