Discover some personal finance worksheets that no one should be without. Unless you’re independently wealthy, your finances aren’t going to take care of themselves, and you’re going to need some effective tools to help you keep track of everything.
"Probably the very best thing my earnings
have given me - is absense of worry.
I have not forgotten what it feels like to worry
whether you'll have enough to pay the bills.
Not to have to think about that any more
is the biggest luxury in the world.”
- J.K. Rowling |
It’s impossible to keep track of your daily expenses in your head, at least not with any degree of accuracy. In order to eliminate your debts and become financially free, you need to manage your money carefully. The first thing you need is a written budget. Sit down with your spouse or partner and make a list of all your monthly expenses. Separate the necessities (rent, food, electricity, etc.) from the non-necessities, see which expenses you can eliminate or reduce. Be realistic, though. No, cable TV isn’t a necessity of life, but you’re not likely to go without it, are you? That said, could you subscribe to a less expensive package and eliminate the channels you don’t watch? There are probably a lot of things you’re spending money on each month that you could get for less money, or get rid of altogether. With your expenses now clearly defined, using one of our free personal finance worksheets: the cash flow statement. How much income do you have each month? Where does it come from? Is it fixed, or does it vary? Do you have some sources of income that only come into play during certain months? You need to know exactly where all of your money is coming from, and how often. Be sure to take into account any investments or interest you earn, too. So you have your expenses and your income. Hopefully, the latter is larger than the former! Your goal is to earn far more than you spend. We can address the question of how to earn more later; for now, let’s focus on how to spend less. On of the most powerful personal finance worksheets you have is your checkbook register. You must maintain the balance in of your checkbook constantly! Fortunately, most banks nowadays offer free online banking, which makes balancing your account even easier. Furthermore, many people don’t write many checks anyway, preferring to use debit cards and to pay their bills online. Either way, whether you do most of your payments online, with a debit card, or by writing checks, you must keep careful track of where your money goes. You can reconcile your expenses to your monthly budget in order to ensure you are staying on track. The point is that you’ll never get out of debt and gain control over your money until you employ these basic personal finance worksheets and get serious about governing your finances.
"Debt is like any other trap, easy enough to get into,
but hard enough to get out of."
- Henry Wheeler Shaw |
|
Debt is NOT your friend. It's not a wonderful "tool" for building wealth. That's a myth.
