How To Use A Debt Worksheet To Organize Your Financial Life

Getting financial life in order requires discipline and a lot of organization. After all, there are so many expenses that you need to tightly control everything you spend monthly to avoid unpleasant surprises at the end of the month.

To make your life easier, some tools are very useful and help in organizing finances. One is the debt spreadsheet. This is a way of recording all your income and expenses, as well as allowing you to plan future expenses or view savings possibilities.

Choose the best tool for your spreadsheet


The first step is to choose the tool you like best for assembling the spreadsheet. Many people use Excel, which has many features, the simplest, most complex, or Google Drive, which has functions. similar to Excel, but stores the data in the cloud.

For those who prefer a little more agility and precision, an “application” of financial control, such as the GuideBayment, is the best option.

Build the spreadsheet with all expenses


To begin this process, it is interesting to opt for a simpler model and then to add new features as needed.

To assemble, the process is simple:

  • In the first row of each column, put the months of the year;
  • In the first column, write your fixed and variable expenses (installment accounts, for example) on each line;
  • Then, just fill in the months with the values ​​related to each expense;
  • Be sure to leave one last line every month for the total spend.

If possible, divide expenses into categories such as food, transportation, leisure, health and others. This will help you visualize how your money is being spent.

Make the most of your debt spreadsheet


For the use of this tool is important enough attention and discipline. Access the spreadsheet daily and record any new issues that have occurred. It’s important that you keep track of anything from coffee to rent. After all, every expense is important and so you will have a complete view of your finances.

After the end of a month, analyze how your spending is in line with the areas. For example, you may find that you are spending a lot on transportation. With this information, it will be possible to think of alternatives such as the use of public transport, relay cars or other actions to reduce these debts.

Prioritize more expensive questions

By analyzing the spreadsheet information and making the necessary changes, you can end up with more expensive, and therefore more urgent, debts. The only thing about it is the credit card and overdraft, which have very high interest rates.

Calculate how much you need to pay these debts faster and see how to get this money. For example, you have realized that you can save $ 300 per month with transportation. This money can help pay off the credit card or be saved for another function. The second alternative is to resort to a low interest loan. You can compare and contract some options on the PaythePay website and in the app.