Excel: The Tool For Handling Your Finances

Are you familiar with Excel? If you have briefly heard of it, then you may know that it is a spreadsheet program. Excel was created by Microsoft and it is part of their office program. Excel can be used for organizing data or calculating large sums. This software can be used in so many areas of life, such as time management, accounting, or planning events. Some may view Excel as a complicated software to use, yet it can actually be a great tool for your finances.

Why Should You Use Excel?

Before touching on some financial ways that you can use Excel, we should cover the essential benefits that it offers.

Having Control

Other softwares are typically programed in a way that cannot be completely adjusted or altered. Although this may be more ideal for those who want a template already made, it can be very limiting on what aspects you can add in. Such programming can make it difficult when wanting to have a personalized financial plan. With Excel, you have endless options for creating a plan that works for you. If you happen to work well with having a template, then do not fear. Excel offers a vast amount of templates that you can choose from. The convenient feature is that these templates can be edited to your likeness.

File Size & Reliability

Whether or not you have different files for all of your financial plans, file size is something to consider. Although this is a factor that is typically overlooked, it should not be ignored. Having a reliable program is vital, to ensure both the safety and protection of your financial data. If your program software does not have a proper method of storing your data, then you easily could lose weeks or even months of data. With Excel, you do not need to worry about these issues. Excel can handle a large amount of data and as a precaution, it has options to resize your file to ensure that it performs quickly and does not get corrupted. You can always save your file at any time in Excel and it even has an auto save option you can turn on, which saves your work every few minutes while connected to the internet.

Lower Program Cost

Most companies have a monthly subscription cost to use their program. If you miss a payment, some of these programs will lock you out of your account or even delete all of your data. With Excel though, you are required to purchase the program to use it. Once you pay for it once, it can be used at any time on the device that you downloaded it to. This in itself is a reassurance, since you know that you will always have access to the program. Cost wise, this will save you in the long run. Monthly subscription softwares can be much more expensive and in the end, you do not even own the program.

Financial Areas to Use Excel

Paying Off Debt

This is a very practical way to use Excel. Paying off debt can be a long journey for many of us. Having a well organized plan is vital. Excel has rows and columns of cells, which can organize your entire debt journey. You can create different sections to track the debts that you have already paid off, the ones that you are currently working towards, and the ones that you are planning on working on in the near future.

Having a Budget

Although there are hundreds of budgeting apps and programs, Excel is fantastic for creating an outstanding budget. Once you input your financial numbers and costs, Excel can automatically calculate the rest for you. This can include your monthly spendings, your savings, and other expenses. If you need to make any changes or adjustments, you can alter the sheet and have it re-calculated. Not only does it keep your information accurate, yet it is so simple to create your budget to cater your needs.

Planning For Retirement

Similar to the previous point, you can use Excel for planning your retirement. Your retirement will be one of the largest savings that you work towards in your life. With something so important, you want to make sure that you plan accordingly. In Excel, you can arrange the total amount you have saved now and the saving accounts you are saving to. Within your Excel sheet, you can also incorporate goals and tips for saving for your retirement.

These points certainly show why you should be using Excel and in what financial areas you can use Excel. Although you may still feel hesitant on using Excel, taking the time to get to know more about the program will make you more comfortable.

Sources

-Nyawara, Calvince (2021). How to Manage Your Finances With Microsoft Excel. Software Keep. Retrieved from https://softwarekeep.com/blog/how-to-manage-your-finances-with-microsoft-excel