How to Successfully Tackle Personal Finance with the Power of Spreadsheets
I can’t speak for everyone, but for me, personal finances can really get away from me.
I feel like to really budget how I want to, I need to first make a surplus of money that can be organized in the first place.
But according to some studies, more than 50% of Americans are living paycheck to paycheck and the amount of money they make actually doesn’t change this fact.
So what do we do to succeed in personal finance despite the odds?
I’ve worked in the financial industry for several years now and I don’t have all the answers, but one thing I do know is the power of spreadsheets.
Spreadsheets can feel ominous and complicated but Google Spreadsheets make utilizing the power of spreadsheets so easy.
First: Make a Financial Accounts Tab
Make an accounts tab in your Household Budget Spreadsheet and outline all of your financial accounts in one place together.
I used generic names and numbers below to give an idea of what an accounts tab might look like.
I like to do this so that I can see the primary financial details of my monetary accounts all in one place.
Second: Make a Monthly Budget Tab
The next thing I do is make a monthly budget tab that divides up all of my spending into neat, color-coded sections.
I like to do this because then I can use spreadsheet formulas to calculate how much I’m spending on each budget section each month and the percentage of my entire budget that this section is taking up.
Monthly Budget Sections:
- Housing
- Bills
- Credit Cards
- Loans
- Entertainment
- Household
- Savings
Third: Use Simple Spreadsheet Formulas
I only use a few simple spreadsheet formulas that help me automatically see key budget calculations.
The most common budget formula you’ll use in a spreadsheet budget is the SUM formula to calculate totals:
Another common formula you’ll use is the MINUS formula to find the difference between two numbers:
Finally, the last main spreadsheet formula you need to know for your budget is the DIVIDE formula.
This will help you divide two numbers so you can get a percentage, like what percentage of your total monthly income is going toward housing.
Budget Spreadsheet Formulas:
- =SUM(insert cell numbers here)
- =MINUS(insert cell numbers here)
- =DIVIDE(insert cell numbers here)
I hope these budget formulas help you make a useful, simple spreadsheet budget for yourself!
Making a budget that you can actually understand and easily update and adjust is the first big step to tackling personal finances and gaining more control over your money.
