What is a Debt Management Spreadsheet? In short, it is a template that you can use to help you organize all of your finances. By creating a debt management spreadsheet you can keep track of all of your bills, accounts, and income sources and expenses. This will help you get organized and work on coming up with a budget.
How do you create a debt management spreadsheet? Start with the three basic types of finances, which are: personal, consumer, and business. Use the following categories to organize your finances. Personal Expenses: Your spending should be divided into a home, food, entertainment, and other personal expenses.
Money for living expenses such as rent, food, utilities, and entertainment. Additionally, you want to pay your bills on time so that you don’t waste money. Consumer Expenses: You can use the money you earn through jobs or sales. Use this money to pay off credit cards and bills.
Business Expenses: This is usually where a business entity gets its income. Work out the amount of money you are making and how much is going to business expenses. These include taxes, gas, supplies, advertising, and product development. For this type of expense list, you will also want to know how much is going to your investment account and how much is going to your mortgage.
For a business, you need to include all of your payroll and other business expenses. These are accounts such as merchandise, licensing, advertising, and rent. For a home, including all your mortgage payments, and any other expenses for rent or furniture. Finally, include any savings or investments you have. For this kind of expense list, you may want to keep track of insurance or tax savings from investing in a home or business.
The types of accounts or categories you use will depend on the type of business you have. When creating a Debt Management Spreadsheet, keep in mind that you will only use one category for each of the areas you want to keep track of, so make sure you are only keeping track of the accounts you need to.
A Debt Management Spreadsheet is a good way to begin organizing your finances and come up with a balanced budget. This is especially helpful for those who are trying to make a budget to get the credit score they want.