Recently, Jesse at PF Firewall wrote about his top 14 personal finance tools to help out different aspects of your
finances.
I looked through the list and had some experience with some of the products, but for me a simple Google Doc spreadsheet is my favorite money tool. It’s what I go to every month to track my net worth, view monthly changes, and organize my accounts.
No online product has replaced it yet, and I can’t picture a future without using it.
Tracking my finances monthly has allowed me to visualize the changes of my money like never before. Up until 2 years ago, I had just casually checked my checking account balance and as long as there weren’t any huge changes, I didn’t pay much attention to it.
Now, I keep track of monthly gains and decreases, and I can see exactly how much I’m saving from month to month.
This makes saving fun and addicting. It’s a challenge to keep my bottom line going up, and I now look forward to the 1st of every month when I total my money.
Here’s why a money spreadsheet will help your finances.
It’s Not Automated
Sites like Mint.com pull your information from different sites and provide you a picture of your overall finances. Sounds great, but the automation isn’t always as perfect as it appears.
Mint constantly gives me an error saying it can’t sign in to certain accounts and ING has notoriously denied Mint its transaction history during the day. It quickly turns into a huge headache when I just want to check to see if a transfer went through.
Meanwhile, my spreadsheet is available 24/7 with no hiccups.
I also use the monthly checks to search for any suspicious activity and to make sure they are working correctly. It keeps me engaged with my money without being overwhelming. I only open the spreadsheet on the 2nd of every month and that’s it.
Automation is great if it works correctly, but sometimes simple is the best option.
You Understand Your Money Situation
Since you’re manually putting in the numbers, you’ll understand your money better. You’ll actually see the changes and this will promote savings and smart money habits in your life.
If you’re in a dire money situation, stick with the monthly updates! It’ll be difficult to see the numbers fall or barely go up every month, but keep with it and you’ll see the results you want. If you can commit to keeping track of you finances, you have the ability to beat your money situation.
It’s easy to sign into Mint and gaze at your money, but it’s more beneficial to do it yourself and see the changes.
Easily Adjustable
Occasionally I’ll want to alter my records by adding an account, deleting an account, or adding a new way of tracking my expenses. With the spreadsheet it’s simple and I don’t have to worry about changing records within some database. Once I have all of the initial organization set up, it’s simple, and changes can be made almost instantly.
When you have your money being tracked by a website, it’s more difficult to get the customization you want for your money. The spreadsheet is as bare as it gets, and it allows the individual do as they please.
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Some people don’t trust keeping their finances online for fear of internet pirates. I don’t mind sharing my information with Google and I feel like it’s safer with them than on my computer which could crash or be stolen. If you don’t like Google Docs, try any spreadsheet application you have available.
Either way, the moment you start documenting your money will change you financial life forever. You’re taking an active step to become more involved with your money and there’s nothing but good things to follow.
Good luck!
Photo: Don Hankins
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Love using spreadsheets – I use them all the time for a ton of different tasks. I haven’t gotten that into Google Docs yet, but it seems like something I have to look into.
I just got into google calendar because I have the HTC Google phone and it is amazing!
.-= Evan´s last blog ..Make the Most of Unemployment =-.
[Reply]
Austin Reply:
April 10th, 2010 at 11:13 am
Docs is unreal, I would definitely recommend trying it out.
Here’s a post I wrote for PT Money about the $ benefits of G Docs:
http://ptmoney.com/2010/02/09/use-google-docs-to-save-big-and-make-life-easy/
Hope that helps :)
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I use Quicken, but I have yet to find any program that does exactly what I want it to do, so I have created my own spreadsheets as well.
.-= Kristia@Family Balance Sheet´s last blog ..$500 Challenge Update and Mr. Linky Test =-.
[Reply]
Austin Reply:
April 10th, 2010 at 11:11 am
What do you like about Quicken? Would you suggest it to a money-loving friend like myself?
[Reply]
I’ve been waiting on someone to spill the virtues of a Google spreadsheet for financial tracking. I don’t like Quicken because it tries to be everything and gets in the way of itself sometimes.
Start with a simple spread and add to it as you learn about the features.
Example, I recently learned how to import cells from my wife’s budget tracking sheet to mine so we can monitor how both of our totals for the month are adding up.
We have over 2 years of spending safely stored. No need to worry about a HD crash or lost flash drive. It’s free and accessible anywhere.
Also Google spreads are easily downloaded to Excel format.
Tim
[Reply]
Austin Reply:
April 11th, 2010 at 11:49 am
Absolutely, Tim. The money products are decent, but it’s difficult to find one that fits your individual needs.
Has your money situation dramatically improved since you started tracking?
[Reply]
Hey Austin,
First time on the site. Jesse at PFF is great. I’ve seen a couple of his posts and he’s so true that implementing a spreadsheet is one of the best tips on budgeting someone can adopt. Once you figure out excel, if you’re not proficient already, they are so easy to manage. Beats trying to keep it all organized in your head and ending up short at the end of the month. Or worse, ending up short at the end of your working years when there’s no more time to fix the problem.
Oh, and on the most recent post, great pics of Brazil from Danielle. Would love to travel there with my wife sometime and see the amazing landscape.
Cheers,
P.S. Anytime you’d like to write a guest post on our PF site, we’d love to have you.
.-= Guy G.´s last blog ..The Mind/Money Equation – Tips on Budgeting =-.
[Reply]
Austin Reply:
April 12th, 2010 at 3:41 pm
Thanks for the kind words, Guy G. I’ll be in contact with you soon!
[Reply]
Glad I could spur such a great post, Austin and thanks for sharing the benefits of this financial tool. I am prone to automation, love it actually, in many areas of my life. I’m a programmer, what can I say :) but I agree that getting your hands dirty with your money is one of the best ways to get things under control as well as keeping them on track.
You don’t know exactly what goes into baking a cake just by eating the end result…
Love the site by the way
.-= Jesse´s last blog ..Linkworthy: Gardens, Nurses and Foreigners =-.
[Reply]
Austin Reply:
April 12th, 2010 at 3:43 pm
Thanks for the inspiration, Jesse. I fully believe that anyone who has turned around a sub-par money situation had to get their hands dirty at first. Unless you stumble upon a winning lottery ticket or inheritance, you’re not going to make any positive strides without some hard work.
Thanks again, man!
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