Today I decided to share something on the topic of managing your personal finances. Everyone should once in a while do a personal budget calculation. If you do not know how much you earn and spend it is a real challenge to manage your personal finances. How to estimate which car you can afford? How to calculate how much savings will you have in 1 year? How to assess which personal monthly costs you can reduce? When planning some tough personal expenditures I had to tackle all these questions. I wanted an Excel spreadsheet which would provide me with all these answers. I wasn’t comfortable with sharing my finance information with some Web page sites which provide such capabilities. So I made a solution of my own:
The Steps for personal budget calculation
Insert your monthly expenditures
Insert your savings and interest rates
Insert your monthly income, hit calculate and admire the results
I use this calculator on a regular basis to always be able to take informed financial decisions especially before making serious financial commitments e.g. buying a house, car etc. So should you. Don’t rely on bank clerks to tell you how much mortgage or financial loans you can afford. Look for yourself.
You can download the calculation model from here: