How do I create a spreadsheet to organize my accounts?

Know how to make a spreadsheet to organize your bills is an important step towards achieving financial goals. Although it may seem like a complicated activity, the process is simpler than most people think. Check it out below.

How to make a spreadsheet to organize your accounts

Financial planning is essential for anyone who wants to improve the organization of their finances. It's also fundamental to achieving your financial goals, whatever they may be. 

To achieve financial stability, consumers often ask themselves: how to make a spreadsheet to organize your accounts? This is the first step on the road to organizing your finances. 

Most people don't manage to keep track of their finances, which end up getting out of control and turning into a big snowball. So as not to be negatively surprised, there are methods for creating a financial spreadsheet.

What is a financial spreadsheet?

A financial spreadsheet is a system where consumers write down all the data relating to their budget. Thanks to technological advances, it's possible to find platforms to record this information automatically or manually.

However, regardless of how the notes are made, the main objective of these platforms is financial organization. To use them in the best possible way, you need to write down all your money coming in and going out. 

Using a financial spreadsheet, consumers can separate their spending into categories, such as: housing, food, entertainment, health, transportation, education, services, among others. Forms of income should also be entered in the table. 

With this information, consumers can build up a solid control of their finances, monitoring progress each month. This simple habit makes a difference to everyone's savings, as it is extremely beneficial. 

Tips for creating a financial spreadsheet

Now that you've realized the importance of creating a financial spreadsheet, you're probably wondering how to do it. The procedure is simpler than it sounds, you just have to customize it according to your reality. 

When data is disorganized, it's difficult to find a satisfactory way to use that financial spreadsheet. To help with the creation of spreadsheets, there are a few tips for consumers. Check them out below:

1. choose a tool

The first step in creating your spreadsheet is to choose the tool where you will record all your financial data, from earnings to expenses. The most popular models are Excel, Microsoft and others. 

Most people use Excel, since it's the most popular template and most users know how to use it. Sheets, on the other hand, has useful features for organizing finances, as well as automatically saving information to Google Drive. 

Some people prefer to use specific apps for organizing their accounts, available for Android and iOS. Nowadays, there are a variety of options for improving your finances, you just need to find a model that suits you and write down all the data. 

2. Write down your main sources of income

Once you've found a suitable tool, the next step is to write down your main sources of income. Experts suggest dividing your income into categories, such as salary, rent, investments and so on. 

When creating your spreadsheet for the first time, leave a space to write down data later. That way, you can add information in the future without compromising the original formatting. 

3. Divide your expenses into categories

Another tip for creating your financial spreadsheet is to add a spending category. It's important to divide up this information to make it easier to understand and structure your financial planning. It also makes the document visually pleasing. 

Consumers need to leave space for sources of income and spending categories. It's important to organize this spreadsheet with your recurring expenses in mind, such as water, electricity, internet, financing, rent, among others. 

To improve the organization of the spreadsheet, divide the expenses into fixed and variable. Fixed bills are billed monthly and the amount is not variable. On the other hand, when it varies, it changes very little. 

On the other hand, variable costs relate to bills that change every month, depending on the frequency and intensity of use. Examples of these are leisure, food, clothing and other bills. 

4. Reduce monthly costs

To improve financial organization, consumers need to understand where their money is spent. As mentioned above, to access this information, simply create a financial spreadsheet. 

With this financial data in hand, consumers can find ways to save money. It's also possible to devise strategies to reduce spending by not buying certain products or services. 

If most of your budget goes on food, cut down on the number of meals you eat out or don't order takeaway. On the other hand, if you spend a lot on transportation, consider other ways of getting around, such as walking or cycling. 

5. Make investments

Now that you know all the ins and outs of money, the next step is to save and think about ways of investing. By reducing the costs of your finances, you can increase this margin. 

However, before investing in any asset on the market, it is important to know your investor profile. This consists of understanding the risk exposure you are determined to face. 

In short, instead of leaving your money in a savings account, consider other forms of investment that really do yield more, such as fixed-income securities. 

What to consider when creating a financial spreadsheet

There is no correct formula for creating a financial spreadsheet, what really matters is that you are able to use it consciously.

So before you create your financial spreadsheet, think about which platform best suits your needs. In short, whether it's Excel or the old notebook, you can organize your finances efficiently. 

If you're having trouble creating a financial spreadsheet, there's no need to worry. There are a number of ready-made templates to download from the internet. 

These spreadsheets can be downloaded for free from the internet. In short, any model will do, as long as consumers are able to use it conscientiously.