When I track income and expenses, I always track down to the penny. I want to know exactly how much I’ve made, how much I’ve spent, and how much I have left, and the only way to be certain is to record those transactions at their smallest unit, the penny.
In practice this means that if I make $157.48, spend $12.76 on a couple coffees, $45.33 at the movies, and $34.81 on a tank of gas, I’ll have $64.58 left to spend. I should know that number exactly, so I know exactly how much I have left to spend.
You may be tempted to disregard the penny, and track on the dime. I don’t think you should do that. Especially if you’re using an app like YNAB (You Need A Budget). And you should be using an app like YNAB.
In fact, don’t just use an app like YNAB, actually use YNAB, and sign up through my link here to save $5: https://www.chriscookley.com/YNAB
Budgeting apps do the math for you, so there’s no reason to get lazy with pennies.
If you don’t track the penny, you’ll have a nightmare of a time when you reconcile. I have a post on reconciling coming soon.
What do they say? A penny saved is a penny earned? Your pennies matters! Keep track of them!