Congratulations on taking the first step to becoming debt free!
When we made the decision to become debt free, we immediately figured out our biggest money sucks and how could we change them.
This spreadsheet helps identify where you’re spending, including overspending, your money. It will take time, but it’s time well spent.
What Should You Do?
Gather a year’s worth (no less than three months) of your credit card, checking accounts, savings accounts and any other account statements that captures your expenses. You can often export transactions from your financial institution’s website directly into Excel, so you can copy and paste transactions to this spreadsheet to save time.
Then, add up the total of all your expenses in the appropriate cells. You want to be as detailed, but not overly detailed and some expenses are easier to itemize than others. For example, all your expenses at grocery stores fall into groceries. For us, it made sense to separate our social spending from our drinking expenses. This may not be true for you.
Watch our video demo below so you can learn exactly how to use your brand new spreadsheet.
We were surprised by what we saw. Our spending was out-of-control. From here it was easy to see what expenses we needed to cut down or cut out and direct those savings to paying off our debt.
Can’t start right now? Don’t worry. We emailed all this to you. Don’t put your financial freedom on hold, though! Complete your grid this week and be sure to watch the above video so you can master your spending like a pro.