Estimating personal financing is not a simple thing to do. Many people plan and keep track of their personal expenses by estimating everything. As a matter of fact, estimating does not help them in the longs run. One of the quickest and easiest ways to keep track of personal finances is to visualize them. Personal expense calculator can help in this matter.
What is a personal expense calculator?
A personal expense calculator is a useful tool that helps the user keeps track of all the personal expenses. The calculator is used by the user after summing up all the income received from multiple sources and then enlisting the expenses incurred in a week or a month. Usually, the calculator is used to calculate the personal expenses of one month.
How to use expense calculator?
There are a series of steps that can be taken to use the calculator for a better outcome in your financial life.
- Take all your income into consideration. You should know the exact amount of total income. Make sure that the tax deductions have already been made on the income you receive.
- Consider all your expenses in a particular duration of time. One of the simplest ways to do this is by categorizing your expenses. Include mortgage payment, rental payment, repair expenses etc. in the category of housing. Similarly, in the transportation category, add the payment of car you make each month, fuel expenses, insurance amount and a lot more. As you increase the number of categories, the math calculation becomes tougher. The expense calculator can be used to do a simple but confusing math for you.
- Review it with a thorough analysis that where you are actually spending your money. This is the amount of money that you don’t actually bother while spending. Considering will help you know how your little costs add up
Benefits of personal expense calculator:
- If you have set your goals in terms of spending your money wisely, using the expense calculator can help you achieve them. Plans for saving the money can also be achieved easily when you have a calculator that keeps telling you how much money you are left with.
- The calculator also helps when you are in the need to plan anything on urgent basis. For example, if you have to travel somewhere due to an emergency, you can plan your expenses easily with the help of a personal expense calculator. Since the calculations are performed very quickly, you can plan everything while being busy in organizing other things at the same time.
- Many people want to keep track of their expenses but don’t find time to do so. The calculator can be used for quick and accurate calculations. The expense calculator is such a useful tool that can be used for tracking the expenses in a practical way
Download a ready-made personal expense calculator sheet from here which has many pre-defined formulas to get you done with all the calculations without wasting time.
Format MS Excel: [.xlsx] Size: 36 KB