In a previous blog post, we discussed how tracking your earnings and organizing them into monthly summaries can empower better financial decisions.
Now, let’s delve into the equally crucial task of monitoring your expenses.
Whether you’re a freelancer, a small business owner, or simply someone who wants to keep a close eye on their spending, this guide will help you create a straightforward expense log without relying on expensive apps or professional bookkeepers.
Useful spreadsheet: https://erickouassi.gumroad.com/l/vbsad
Who Should Use This Spreadsheet?
Before we dive in, it’s essential to clarify that this method is ideal for individuals and small businesses with straightforward financial needs.
If you’re running a complex enterprise, seeking professional advice is still recommended.
The DIY Expense Spreadsheet
I’ve designed a user-friendly spreadsheet that allows you to manually track your expenses.
No need to link your bank accounts or credit cards to third-party apps that promise automatic expense tracking (for a monthly fee).
Similarly, bypasses the need for a bookkeeper to compile financial statements. With this spreadsheet, you’re in control.
Getting Started: The Two Tabs
Sheet1: Expense Entry
Each row represents a single expense entry.
Here’s how it works:- Date: Enter the date of the expense.
- Time: Note the time if relevant.
- Purpose: Select from a predefined list of expense categories (e.g., office supplies, travel, meals).
- Amount Spent: Record the expense amount.
- Notes: Add any relevant details for your reference.
- Month: Automatically generated based on the date entered.
Sheet2: Insights and Analysis
- Comparisons: Notice trends—did you spend more on gas this month compared to the previous one?
- Frequency: Track how often you visit the garage, or car wash, or invest in accessories.
- Business Decisions: Armed with this data, make informed choices for your business or personal finances.
Familiar with Spreadsheets? You’re Good to Go!
If you’re already comfortable with Excel or other spreadsheet software, you’ll find this system intuitive.
Remember, simplicity is key.
By maintaining your expense log diligently, you’ll gain clarity, control, and the ability to make smarter financial decisions.
Happy tracking! 📊💰
About This Post
This blog post represents a collaborative effort between myself and Copilot. While the initial draft originated from my creative mind, Copilot contributed its expertise to enhance the content for better clarity and understanding. The final edits and revisions, however, were made by me once again. If you happen to notice any grammatical errors or other issues, please don’t hesitate to reach out – your feedback is truly invaluable! 🙌📝