Expense control worksheet: how to avoid debt
March 31, 2020
Every year starts with big plans, but sometimes we fail to achieve them for a seemingly simple matter to resolve: lack of financial organization. We have found many reasons, several of them very justified, for our economic lack of control and we continue to live life on the edge. But it is possible, yes, to get out of this and manage to balance the accounts, pay off debts, avoid new ones and still comply with New Year’s resolutions. And the first step for this is to keep a spreadsheet for controlling expenses. Below are some financial benefits obtained using a spreadsheet:
Do you know the feeling of not knowing where the money went? With an expense control spreadsheet, this is the first problem that will be solved. By delineating all your fixed expenses (rent, financing, bills, etc.) and variable expenses (food, leisure, shopping, for example) you will be able to identify how your money has been spent.
Based on the financial mapping extracted from the expense control spreadsheet, it will be easier to see in which aspects you are exceeding yourself. Unnecessary shopping, high energy consumption, eating out, expensive leisure options are some examples of what can be reviewed, controlled and cut.
Simplified view of problems
Another benefit that the adoption of an expense control spreadsheet can provide is to better visualize the main financial bottlenecks and, from there, outline strategies to solve them. The most common problems are: multiple high-interest loans, financing that has gone out of control, overdue credit card, overdraft, etc. Each of these problems can be solved with discipline, organization and resilience.
Being aware of costs, it is possible to make them fit within your budget. A financial spreadsheet shows how much revenue you have and what your future expenses are. By cutting excesses and sticking to the standard of living that your budget allows, in a short time your accounts will be balanced and you will be able to start saving or investing part of your money.
Financial goals and objectives
After using the expense control spreadsheet to resolve the past and organize the present, it’s time to think about the future. What are your plans for 2017, besides being debt free? Financial goals and objectives are essential for a good economic projection. You can plan a trip at the end of the year or, who knows, save money to open your own business. All of this can be placed inside the spreadsheet in order to save money and get there.
Savings and investment
It is important to place savings or investment as a fixed monthly “cost”, mandatory as an electricity bill or rent. Accumulating that amount can help you achieve your goals! Even with all these benefits in mind, do you find it complicated to put together an expense control spreadsheet? You don’t have to worry anymore. Thanks to technology, there are many models and financial applications that can do this for you. Adopting a financial expense control spreadsheet will make it easier for you to enjoy life with your finances in place.