You have a budget, now here is how you can track your spending
Happy New Year!
As we start a new year, now is the perfect time to create a budget, but more importantly you need to have a way to track your spending. How does one start? Knowing where your money is going every month, is key to keeping you on top of what you are spending so that you can make the right decisions for you and your family.
One of the things I have learned is that it’s not how much you make, it’s how much you save. At a time where more people are becoming more responsible for their retirements, this is an lesson that needs to be heard.
Creating a budget can help you balance your income with your savings and expenses and can also help you plan your financial future, save for a rainy day, save for a downpayment on a home, etc. A budget tracking spreadsheet is not a budget. It’s a place to keep a record of all the money that is leaving your pocket and show you where your hard earned money is going.
Creating a budget is especially important if you:
don't know where your money is going
don't save regularly
have problems paying off your debts
feel overwhelmed by your finances
feel like you’re not in control of your finances
want to make the most of your money
are planning for a major purchase or a life event
Tracking your budget can help you:
set spending limits
see your progress in paying down your debts
reduce costs and save more
have more money for things that are important to you
feel in control of your money
With the variety of available online and downloadable budget spreadsheets and templates, it's easy to manage your finances. In addition to budgeting for routine, daily expenses, these tools can help you save for an upcoming family event, a new business, or a college education. I did some research and found that the following spreadsheets are available in ready-to-use form or can be easily modified for your use.
Vertex42
Vertex42 is a company that has been creating professionally designed spreadsheet templates for businesses, individuals and education use. They have over a dozen free budget spreadsheets that work with Microsoft Excel®, OpenOffice.org and Google Sheets™. Vertex42 has a variety of templates, such as monthly and yearly household and personal budgets, travel budget worksheets, Christmas budgets, wedding budgets and many more. Many of these spreadsheets include a demo video tutorial.
For those who want to track expenses against a budget, the Money Management Template is an excellent Excel or Calc spreadsheet that does not require the use of macros.
It’s Your Money Budget Spreadsheets
It's Your Money lists a variety of free budgeting spreadsheets, including a Cash Flow Budget Spreadsheet inspired by Dave Ramsey's budgeting methods. Need to keep a budget by the week? Try the Box Budget Spreadsheet, which breaks down each month into four weeks.
These spreadsheets work with Microsoft Excel with macros enabled, and some work with OpenOffice Calc (free). It's Your Money offers an assortment of free or low-cost personal money management spreadsheets
PearBudget Spreadsheet
PearBudget is a free (it’s free for 30 days then its $4.95 a month after) comprehensive household monthly budget spreadsheet that can be downloaded and used with Microsoft Excel or any other spreadsheet software that supports xls files. An analysis tab analyzes expenses by month and budget category, and shows the difference between actual and budgeted spending.
GoogleSheets Budget Spreadsheets
Use the Google docs template gallery for Google Sheets to find some great options for budgets. Google offers a variety of planners from a comprehensive budget spreadsheet to more compact planners. Check out the link above to select the one the best suits your needs.
If you prefer using Google Drive spreadsheets, you can also find some of the Vertex42 budget spreadsheets in the Google Drive templates.
Know where your money is going
Every dollar you spend affects your overall budget, so tracking your money will help you gain insight into how much money is coming in and what goes out of your pocket. Small changes to spending habits can have a major impact on your budget and your ability to save.
Now that 2020 is here, try tracking your spending for 60 days:
keep track of everything you buy, from groceries, to cable bills to your daily cup of coffee
keep a copy of bills you pay during this period
try dividing your expenses into 2 categories: “needs” and “wants”
Looking forward to hearing about how your budget tracking is going. One trick that I often use is to set a monthly reminder on my calendar to make sure that I review my budget regularly. If you make it a habit, you are more likely to stay on track.