Thursday, June 14, 2012
This allowed me to gauge my annual expenses when it came to homeownership, as well as know to the penny, just how much money our home was costing us. I could also determine our profit/loss (which was most certainly a loss) after closing costs and realtor commission when we sold.
Having a spreadsheet to gauge both income and expenses is a great way for me to track my financial progress over time. I can watch how much I earn and how much I spend on a monthly and yearly basis. This can be extremely beneficial when it comes to looking for ways to cut costs, areas in which I might increase my income, year-over-year progress, and personal inflation rates.
I like knowing where my assets and liabilities lay and in what amounts. Being able to determine how my investments are doing, whether they’re advancing or declining, the interest rates they are earning, and what percentage of my portfolio they comprise at a moment’s notice makes my financial life easier and quicker to evaluate on a regular basis. Just one page -- copied and continued each following month -- is enough to give me an overall picture of where I’m standing financially and how my overall net worth has performed in relation to previous months.
Even more recently, I’ve used a spreadsheet to come up with a retirement plan for my mother that figures her expenses, income, and assets. I am even using a spreadsheet to plan our upcoming vacation and Christmas costs and budgets.