What Budget Spreadsheets Can Do For You
If you had to think of one financial tool that everyone knew they should have but few actually had, it would probably be a budget. The truth is, having and maintaining a budget lays the foundation for a financially stable lifestyle! I recently wrote a tutorial on how to make a budget spreadsheet without spending a dime on software. So, today, I’d like to tell you why having a spreadsheet that keeps track of your monthly bills, debts, income and financial goals is so important to living a financially stable lifestyle.
Budget Spreadsheets Help You Make Your Payments On Time
I can tell you from personal experience, paying late fees and destroying your credit scores could be one of the side effects of not having a budget. If you’re like me, you have more bills than you can remember sometimes. Without a budget that tracks due dates, it’s very easy to forget to make a payment or two unintentionally. Every time this happens, chances are, you are going to pay a late or missed payment fee. Doing this often could cause detrimental effects to your credit score that could take years to reverse!
Budget Spreadsheets Help You To Prioritize Your Debts
If you have debts, as most of us do, you will generally have debt goals. However, often times debt goals are poorly prioritized, costing consumers hundreds or even thousands of dollars in extra interest paid. By creating a spreadsheet and, including information that will help you to prioritize your debts like, interest rates and balances, you will be able to easily figure out which loan should be paid how much money and why. It simply takes the second guessing aspect out of financial freedom.
Budget Spreadsheets Create A Sense Of Accomplishment Which Helps To Pay Off Debts Faster
A good budget spreadsheet will track how much debt you had before and how much debt you have now. Simply being aware of your total debt for the first time can be a bit surprising and drives several to create pay off plans! However, there is no better feeling than watching your balances go down on your spreadsheet as you make payments. Each month, you feel a sense of accomplishment not only for paying your debts down but reaching goals your budget spreadsheet has helped you to create.
If You Don’t Know You’re Making Mistakes You Will Never Fix The Problem
The bottom line is, without proper tracking of your income, expenses and goals, you are going to make mistakes. I know I did! The problem with not having and maintaining a budget is that if you are making small mistakes that might be costing you a hundred dollars per month or so, you may not have an idea you’re doing it! Most of us are visual people. Making it so that you can visualize your finances will definitely make it easier for most people to manage their money.
Do You Use Budget Spreadsheets? Please Comment Below.