This system involves using a ledger or recordbook of some sort to record income and expenses. It is the most detailed and results in the most accurate record all in one place (at least before computer systems). This system may also be a decreasing ledger system. Monthly budget amounts are noted at the top of each column for the various categories. Then as money is spent it is substracted. An advantage to this particular system is that you know immediately what's left in a particular budget category.
It does take time and effort almost daily. Everyone in the household must assist by reporting accurately their own cash expenses.
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