How can we keep track of our progress towards financial stability?
I use some spreadsheets. No need to buy any software, or give my information to others. And I do not use money management websites. These money management websites exist to get information from you. And they are targets of hackers and thieves. Read more about the dangers here.
I keep track of my accounts using my own spreadsheets. That way I do not need the internet to see where I stand. In addition, at the end of every quarter I add up all my accounts to determine my net worth.
For a checking or savings (or money market) account, you can use the free download of AccountBalance.xlsx available here.
Keeping track of investments is slightly more complex. You can use the free spreadsheet StockSpreadsheet.xlsx. It too is available to download from here.
Why Is It Important To Track One’s Finances?
I track my finances because I want to know where I stand. Do I have enough funds for an emergency? Can I afford to do what I aim to do? Will I have enough income to pay for a planned purchase? I prefer to avoid debt if at all possible, and by tracking my my finances, I know the truth about how things are.
It might seem tedious to track one’s finances, but there is great peace of mind knowing one’s situation.
How and Why do you track your finances? Let me know here.
The map of the Eastern Hemisphere was published c.1780 by Rigobert Bonne and is titled “Carte Pour Servir A L’Histoire Philosophique et Politique des Etablissemens et du Commerce des EuropĂ©ens Dans Les Deux Indes.” Courtesy Michigan State University.
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