To get a good handle on how much money you are spending on your living expenses, you need to make a living expenses spreadsheet. You will need to be creative and easy to understand to make this work.
What most people don’t realize is that they spend more on large expenses than they do on small ones. Because of this, it is always easier to have a large expense so that you can see exactly where the money is going. For example, buying an expensive new pair of shoes can add up to a pretty big chunk of change in a short period of time.
So to keep track of all of your expenses, you want to have a spreadsheet where you categorize each expense by various different aspects. You might want to add in living costs for some of your employees, or even take a snapshot of your financial situation at a single point in time.
How to Make a Living Expenses Spreadsheet
When you make your spreadsheet, you should break down the expense categories down into their most basic form. For example, if you are buying a used car, make sure you include the price of the car.
You should also include the cost of fuel for the vehicle as an expense category, since this can greatly increase the overall price of the car. Fuel expenses should be broken down in your spreadsheet so that you can compare the average cost of fuel over the life of the car.
If you do not have any funds in the bank at the moment, you should put that cost as an expense category. This way, you can deduct it from your income and show that you have enough cash to cover those expenses.
The next thing that you want to do is to group together all of your individual car expenses, including depreciation on the car. There are two different ways to do this, either a column for the cost of the car, or a separate column for depreciation.
You can then break down these expense categories into four categories based on how long the car will be around. You can then divide that category into four subcategories: new car, used car, other vehicles, and service costs.
When you make your living expenses spreadsheet, you want to break down the expenses into five categories: food, utilities, entertainment, health care, and insurance. You will then combine these categories into six categories based on whether they are fixed or variable.
The final categories are rent, furniture, entertainment, clothes, and vehicle repair. All of these categories will be tied together with a single category called living expenses.
You should note that there are some instances where you will need to make a living expenses spreadsheet. For example, if you sell your home, you will want to break down the cost of mortgage and taxes to properly account for this expense.
While making a living expenses spreadsheet is not as difficult as you may think, it is important to be specific in how you record your expenses. You want to make sure that you are paying yourself the same amount each month so that you can continue to focus on building wealth, as well as putting money away for the future. YOU MUST SEE : live auction spreadsheet
