How to Use a Spreadsheet to Manage Your Money - Cents and Family (2024)

A spreadsheet is a fantastic tool to help you manage your money. It’s free, it’s easy and it’s 100% customizable to your needs. Managing your money can be intimidating and stressful. Spreadsheets can be used to help you figure out what you need to do with your money. Once you learn the basic functions in a spreadsheet you can use it in several different ways to help you manage your finances.

Let’s dive into the ways you can use a spreadsheet to manage your money.

Disclaimer: I am not a financial planner or expert. All information in the post is my opinion and should not be used as financial advice. This is based solely on my experiences. Any action you take based on the recommendations from this blog is at your discretion.

Spreadsheet Basics

You can either use Microsoft Excel or Google Sheets to access a spreadsheet. If you are new to spreadsheets you can view one of the following tutorials depending on what you have access to.

If you have a Google account – then you have access to Google Sheets. Take a look at this tutorial:

If you have access to Microsoft Excel – here is a tutorial on how to use Excel spreadsheets:

Feel free to look up other You Tube tutorials on spreadsheets.

Easy to Learn Spreadsheet Functions

Once you know the basics of a spreadsheet, the next step is to learn how to use basic functions or formulas. These functions/formulas make using a spreadsheet easier and save you time.

Take a look at this post to learn about the 4 basic functions and apply them to a budget:

Using spreadsheets to manage your money

Net worth

Determining your net worth is a great place to start using a spreadsheet to manage your money. It’s an easy spreadsheet to create. You basically list your assets (what you own) in one column and then all of your liabilities (what you owe) in another column. Use the sum function or adding formula to add each column up and then:

Assets – Liabilities = Net Worth

Use your net worth to find out where you stand financially by understanding where all of your money is and where you owe money. This will allow you to move forward by making goals and form a financial plan. Calculate your net worth once or twice a year to see how much progress you are making.

Budgets

The standard use of a spreadsheet is to create your own budget. It will take some effort and time to create one. The biggest advantage of this method is that you customize it to your own situation. Alternatively, you can also try out the budget templates in both Microsoft Excel and Google Sheets.

For more information on budgets: Budgeting 101

Sinking Funds

Putting money into a “sinking fund” is to save up money for a specific future expense. For example, you have expenses that you have to pay for annually such as home insurance, car insurance, sports registration for your kids, tuition etc. By understanding that you have to pay these expenses periodically, you save money on a regular basis for these expenses. Other bigger expenses to save up for include a down payment for a car or home, a vacation, kids’ future tuition or a major home renovation.

Instead of scrambling to pay for these expected expenses, you have money ready to pay for them when the time comes. It will help to avoid going into debt and to be more organized with your money.

Transaction Tracking

A spreadsheet can be used to keep track of your online banking activities. If you do multiple transfers of money from one account to another in a month, it’s ideal to keep track of why you are transferring, the amount, the date and also the transaction number. This spreadsheet is handy when you need to go back and see why you made that transfer.

Use a spreadsheet to keep track of when you have paid your bills, the amount and the transaction number. This is especially helpful when you have more than a few bills to pay each month as it allows you to keep track of your bill payments.

Tracking Debt

Paying off debt can be a difficult thing to do. Use a spreadsheet to make it easier especially if you have more than one loan. You can either create your own or find a template. Keep track of the interest rates, balance, and payments.

Check out this post from the Squawkfox on Debt Reduction Spreadsheet

Other Spreadsheet Uses

Both Microsoft Excel and Google Sheets have various templates that can help you with financial management. In Excel, you find a mortgage payment calculator, investment tracker, expense tracker and many other templates under “financial management”.Click on FILE and then NEW to search for these templates.

You can also find calendars that you can use for your finances. Use the spreadsheet calendars to keep track of your expenses, bill payments, loan payments and keeping a schedule for investing.

Spreadsheets are a great tool to help you manage your money for free. You can use either Excel or Google Sheets to keep track of your net worth, create a budget, track your sinking funds, online banking transactions, bill payments and track your debts.

How would you use a spreadsheet to manage your money?

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