No matter how you look at it, a budget is extremely important. This keeps you on track, day in and day out, regardless of your income and expenses.
While some people prefer the old fashion method of a “pencil and paper” budget, others have come to realize the benefits of creating a spreadsheet. It may take a little bit of time to setup a spreadsheet that suits your situation, but in the end it will bring you many benefits.
Here are three ways a budgeting spreadsheet will immediately improve your efficiency:
1. Organization. Let’s face it: a spreadsheet allows you to stay more organized than a notebook. Everything is laid out in a neat, clear, and concise manner. If you have had issues with organization in the past, this may be just what you need to improve your budget.
2. Easier to adjust. Since the numbers are easier to see, you can make adjustments when necessary. For example, you can compare expenses for the previous 12 months to get an overall look of where you are spending too much money. From there, you can adjust your budget to improve your finances. This is not always simple when using a paper based system.
3. Simplified explanation. For example, you may want to share the family budget with your spouse and/or children. With a spreadsheet, this is simple to do. All of the columns and rows are laid out nicely and easy to read. The same cannot be said for a notebook with scribbles all over it.
These are just three of the many ways a budgeting spreadsheet can improve your efficiency. If you are interested in making a change, this should be one that you consider.
Do you have any other tips for using a budgeting spreadsheet? Why do you prefer this method over others?