I keep very detailed track of my finances in a Google Docs spreadsheet. This might sound tedious, but once I tried it, I became far less worried about money and much more confident in my knowledge of what I could afford. Periodically checking a bank account is dangerous, it is far too easy to miss payments that haven’t been processed yet. I started this spreadsheet after realizing that many of my purchases don’t process for a week or two after I make them, which can really screw a gal or guy over because you think you have more money than you do. If you are interested in trying out a similar system but don’t know where to start, here is a primer.
First, download the above Excel file. I chose to save a copy in Excel 97-2003 format since most people are familiar with that program, and it can be easily imported into OpenOffice or Google Docs if you prefer those programs. When you open it up, you will see some example data from a single month. (Multiple sheets can be made to represent different months.)
The first section is a dummy checking account. The second is an example credit card line. The third is an analysis of the bills that need to be paid that month, with a break-down of how much needs to be paid each paycheck to stay on track. The fourth section is a place to play around with one-time expenses and one-time income. I will discuss each in detail.
Checking/Savings Accounts
I know many people, including myself, have multiple checking and savings accounts, so this section can be duplicated as many times as needed. (If it gets cluttered, rarely used accounts can be hidden using your programs “hide” feature.) This section is pretty straightforward, The totals are in green, which is my color code for positive money or assets. There is a total from the previous month on top, and then subtractions from each purchase with a brief description, including day of the month.
This section is pretty self explanatory. All income in positive and all purchases are negative. On the top, there is a name of the account and a copy of the running total. If you feel overwhelmed by all the excel formulas, you can look at my examples by clicking on the cell that isn’t clear. All common spreadsheets use a LetterNumber systems for identifying cells. Excel, Google, and OpenOffice all have very similar methods for creating formulas. The most common one is the SUM() function. =SUM(B:B) sums column B in Excel. =SUM(J15:J20) sums cells J15 to J20. You can also enter in simple math, as in =C4+B5, which sums cells C4 and B5. I have used the “financial” formatting, so all negative numbers are in parentheses. Never enter in subtractions; for example: =C4-B5. Adding a negative is the same as subtracting a positive, but this will get very confusing. All income is positive and all purchases are negative. Do only additions and you will get accurate numbers that are easy to understand.
Credit Card Line
This section is very similar to the checking account, with some differences because the line is a liability. The starting balance from last month is negative. This is because a credit line represents money you owe. All purchases off that line are also negative. All payments to that line are positive. When you add a positive (payment) to a negative (the amount you owe), the total amount is closer to zero, or “less negative”. (As in, the total amount you owe is less.) If you are not used to thinking this way, this might feel a bit awkward. If you feel foggy about this, take a look at the examples I have entered into the example sheet.
Bills
This section is for recurring monthly expenses. The top box tracks the expenses, and then how much money is left after paying these monthly expenses. This is a great number to know, because it sets the limit for everything else you can purchase in a month.
The next two boxes break down your bills into pay periods. I typically have two because I get paid every two weeks, but you may have more or fewer. I always pay half my bills every pay period to prevent an end of the month disaster. The yellow boxes are where I calculate how much under or over I am with regards to paying half of my bills each pay cycle. (Note, the numbers should always be equal in magnitude but opposite in sign if the records are accurate). If you get paid more than twice in a single month, you can adjust as needed, or just stash away the extra cash for a rainy day.
Upcoming Expenses and Possible Income
This is a place where you can play around with major purchases or one-time income. If you are saving up for something, you can take a quick look at what kind of income you can use to pay for it. This column prevents me from overcommiting one-time income like a tax refund or an extra paycheck. If you have a tendency to overspend on big purchases, and I certainly do, this column can keep you realistic about how many “extras” you can realistically afford.
And that’s it for now. If you have your own way of keeping track of your income and expenses that might be helpful to other readers, feel free to comment or send me an email.
Greetings All,
Anywho, we also toast the seeds (hey; waste not, want not…..right?). I thought I’d share the easy-peasy recipe, so you can do it, too. Healthy, resourceful, and tasty; enjoy!
INGREDIENTS:
