The mere mention of budgets can send some people into automatic shut down. This is because there is a common belief that a degree in Financial Management is a necessary prerequisite in order to prepare a workable personal financial worksheet. This is simply not the case. Budgeting does not have to be an exercise in frustration.
Get a Financial Worksheet for Free
As a matter of fact, it is possible to download ready-made spreadsheets for free online. These sheets come complete with categories laid out in a logical format and some of them even have add-ons like charts and summary reports.
One such spreadsheet can be found at Spreadsheet 123. Simply click the Download Now link. This site has a variety of useful templates from simple personal budgeting sheets to more complex corporate finance risk models.
What’s Included in the Personal Financial Worksheet?
The first sheet gives a break down of income and expenses. The expenses are broken down into several different categories, but if any category is not necessary simply edit it out of the sheet or retype the name with something that makes sense for the particular budget.
The second sheet is a series of charts that correspond to the expenses in the previous sheet. So it is basically a graphical representation of the information plugged into the first worksheet. This makes tracking expenses a breeze.
The final two sheets give an accumulated picture of the income and expense figures along with a graphical representation.
Depending on proficiency levels, preparing a worksheet that includes this much detail, not to mention the charts that come along with them, can be time consuming. Thankfully this part of the process has been cut out and all that is required is to come in with figures to plug into the categories.
Why is Tracking Personal Finances Important?
Without a sense of what income is coming in and how money is being spent, averaging an amount to save towards future goals is almost impossible. Tracking personal finances also provides a method of estimating future expenses and so creating a provision for them.
Crafting a budget can be an enlightening process, because it emphasizes just how much is spent on every category of expense and really shows how much money flows through the household. When everything is laid out in black and white it is easier to make an attempt to save because a path to increasing the balance in the savings account is illuminated.
There is no need to purchase expensive software to track household income and expenses. A little investigation may reveal that a perfectly workable solution is available for absolutely no cost. What's better than keeping a tab on personal finances? Keeping track of them for free!
Natalia Jones - Natalia Jones is a full time freelance writer. She has an Advanced Diploma in Financial Management (ACCA) and she has previously worked in ...
Join the Conversation