Personal Income And Expenses Spreadsheet – Have you ever thought about what you spend the money for? Do you know what kind of things you spend more? Do you control your savings? In this article of personal finances I propose a way of noting your expenses and income in an excel sheet in a realistic way, to be able to know with confidence what your major expenses are, and thus to manage them better.
Step 1: Record your monthly expenses
The first thing we are going to do is write down for a month, day by day, what our expenses are in different concepts. For this you can download this spreadsheet or create a new one:
– Download income and expense spreadsheet (Excel MS Office .xls format)
– Download income and expense spreadsheet (Open Document format .ods)
As an example, the filled sheet would look like this:
Some of the expenses to consider are:
– Supermarket (food, basic goods …)
– Transportation (subway / bus ticket, train tickets, car expenses …)
– Shopping (clothing, technology, games, accessories …)
– Rent of the apartment and associated expenses.
– Invoices (telephone, internet …)
– Other expenses not included (medicines, travel …)
It is important not to forget any concept, and include all the expenses that we make monthly. Exceptional expenses (for example: holidays, Christmas gifts …) can be left aside, although it is more realistic to include them here, dividing them between the 12 months to have an average calculation of the money that we spend a month.
Once you have entered all the expenses day by day for a month, we add up and we will have the money that we have spent in each concept, as well as the total expense. It is important to write down the expenses on a daily basis since, if we write them down from memory, we would probably forget many concepts to introduce. In addition, this account can be repeated for several months to check if our data are stable or if they vary a lot month by month.
Making a graph with percentages, we can have a better idea of what concepts are the most money we take out of our pocket:
Percentage of expenses
In the example, it is seen how nearly half of the costs go in renting the apartment (which is quite common in some cities). From here we can get a global vision to know, in the case of wanting to save more, where we can stop spending and where we can spend more safely. In our case it would be interesting to cut back on renting the apartment and, to a lesser extent, on supermarket expenses (although these expenses are basic and difficult to cut here) … However in this example it would make no sense to cut back on purchases of clothes or Leisure since, although they are expendable expenditures, currently in the graph it is seen that they are very low and to cut them would not mean a significant saving with respect to the total expenses.
In summary, this chart will give us an idea of whether we are optimizing the expenses or not. If we see that basic expenses are the highest percentage we are doing well, but if the highest percentages go to “luxuries”, it means that we can save more by reducing those items (assuming we want to save more, of course).
Step 2: Calculate your future predictions from previously recorded expenses, and compare them with your monthly income
With the monthly expenses recorded we already have reliable data to do a planning. Now in the second part of the excel sheet we put our monthly plans, and the net income we get from work, interests, values, etc. (Do not forget the extraordinary income and expenses, such as extra payments, aids, scholarships, tax deductions, interest on current accounts, investment gains, profit / loss of securities … we can include them here as a proportion Do a half, or we can leave them apart as long as we do not forget them).
Expected expenditure and savings income
If the difference between income and expenses is very wide, we have room to spend more, but if the values are practically the same, our savings will be very small:
income and expenses
In this way, we have already controlled our personal accounts, and we will know how much money we are saving monthly, being able to modify the different items to adapt them to our planning.
These excel sheets are very simple to use and look superfluous, but they can be a good tool to control personal or family expenses, avoid wastefulness and have a clearer idea of what we are spending our income on.