Putting financial life in order requires discipline and a lot of organization. After all, there are so many expenses that you need to strictly control everything you spend monthly to avoid unpleasant surprises at the end of the month.

To make your life easier, some tools are very useful and help you organize your finances. One is the debt spreadsheet. It is a way of recording all your income and expenses, in addition to allowing you to plan future expenses or to visualize savings possibilities. To help you understand better, we have prepared great information on how to assemble and use this spreadsheet. Check out!

Choose the best tool for your spreadsheet

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The first step is to choose the tool that suits you best to set up the debt spreadsheet. Many people use Excel, which has many features, from the simplest to the most complex, or Google Drive, which has functions similar to Excel, but stores data in the cloud.
For those who prefer a little more agility and precision, a financial control application, such as GuiaBolso , is the best option.

Assemble the spreadsheet with all expenses

Assemble the spreadsheet with all expenses

To start this process, it is interesting to opt for a simpler model and then add new features as needed.
To assemble, the process is simple:

  • In the first row of each column, put the months of the year;
  • In the first column, write your fixed and variable expenses (installment accounts, for example) on each line;
  • Then, just fill in the months with the amounts related to each expense;
  • Don’t forget to leave one last line each month for your total spend.

If possible, divide expenses into categories such as food, transportation, leisure, health and others. This will help you to visualize how your money is being spent.

Use your debt spreadsheet in the best way

Use your debt spreadsheet in the best way

For the use of this tool, a lot of attention and discipline is important. Access the spreadsheet daily and record new debts that have occurred. It is important that you do not forget to register anything, from coffee to rent. After all, every expense is important and only then will you have a complete view of your finances.
After the end of a month, analyze how your spending is in line with the areas. For example, you may find that you are spending a lot on transportation . With this information, it will be possible to think of alternatives such as the use of public transport, car rotation or other actions to reduce these debts.

Prioritize more expensive debts

Prioritize more expensive debts

By making the analysis based on the information in the spreadsheet and promoting the necessary changes, it will be possible to end the most expensive debts and, therefore, the most urgent. A basic example of this is the credit card and overdraft, which have very high interest rates.

Calculate how much is needed to pay these debts faster and see how to get that money. For example, you realize that you can save $ 300 per month on transportation. This money can help pay for your credit card or be saved for another function. The second alternative is to use a low interest loan. You can compare and hire some options on the GuiaBolso website and in the application.  The important thing is not to prolong these high interest rates so that your debt does not increase . 

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