Simplified Money Management
The total amount of money available to me at any time can be thought of as a single lump sum. I've decided to simply split this lump sum into two parts. One part is the money I have allocated for expenses I know are coming up. The other part is my net worth - it is money that is not allocated for anything in particular.
I can go on for as long as I want about setting up emergency funds, short-term savings and long-term savings. But really it just boils down to what my net worth is. And my aim is simply to increase my net worth as much as I can.
In future I'll just record the total amount of money I have available to me, how much is allocated for various things, and how much is left as my net worth. That should make it easy to follow.