Sunday, July 12, 2015

Quick Tips To Ensure Success When Using Excel Budgeting Spreadsheet

By Jana Serrano


Many people have challenges monitoring their income and expenditure. You will be amazed to note that some people can hardly tell how their hard-earned money gets utilized. This calls for one to adopt an effective plan to help them monitor their finances. One can try using free excel budgeting spreadsheet where they can record their expenditure against their net income. Of importance is to keep in mind various tips when using such a budget tool if one is to enjoy great success.

One may have a good budget template. However, without clear financial goals, it is hard to achieve anything. You ought to have discipline and focus as well to achieve financial goals. Once you have set your goals, you can use the excel budgeting tool to help you work towards your plans. Prepare a record showing short and long-term financial goals. It is crucial to list them in order of priority. However, most excel budget worksheets will allow you to edit and make necessary changes.

Plan for your net income only. Once you deduct statutory deductions, it gives you a clear idea of how much money you have left for spending. You cannot budget for what you do not have. This is one way of preparing to get into burdensome debts. Only plan for what remains after mandatory deductions.

Check if your worksheet has columns for variable and fixed expenses. This is important categorization when planning. You already know various expenditures such as mortgage payments and loans as fixed. These do not change for a specific period. However, other payments you make may change depending on different circumstances. For instance, fuel, entertainment and food prices vary. Fill each in the relevant column and indicate how much you spend on the item per month.

Other important breakdown on your worksheet could be in terms of needs, wants and savings. It will come a time when you have to choose between a mandatory expenditure, a luxury and saving. Having some money set apart for each will guide you in your decision. Needs are items that are mandatory for your wellbeing. Savings could be the money you set aside to spend during a vacation or put in your emergency kitty. Have such expenditures recorded if you are to get proper understanding of how you spend your income.

You can find worksheets that are easily customizable. Make adjustments to fit your budget needs. An excel budget template is ideal when you want to fill your own fields. Focus on saving on variable costs if you want to cut on your expenses.

It helps to record your expenses daily. Even if not in your worksheet, have somewhere to note such and transfer into your spreadsheet later. These are the records that will show your main spending areas. Use the information to plan ahead of each month and avoid unpleasant surprises.

There are various worksheets available online today. One will find not only free excel budget worksheets but also Google document spreadsheets. Of importance is to use templates which are easy to customize to desired fields.




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