Simple Personal Financial Plan Template in ExcelBest Practices

Auditing becomes more interesting when you begin being responsible for your income and savings, you need to watch your spending habits and start tracking your funds' allocation. But how can you manage your funds effectively? One way to do it is to begin by creating a simple personal financial plan template in Excel that would help you meet your short-term and long-term goals.

Personal Financial Planning Best Practices?

To ensure that you keep your budget smooth and steady, you need to live within your means. Personal financial planning or personal budgeting is easier said than done, but the good thing is there are lots of tools available like excel to help you stick with your plans. Aside from that, your determination to achieve your goal is the most significant factor in achieving your goals because the plan is just a mere plan without proper execution. Next is setting up your emergency fund. Before investing your money, make sure that you have some money set aside for emergency purposes. Ideally, you should set a certain portion of income until you reach an ideal safety net for unexpected circumstances. Another important factor in managing your finances is setting up your debt limit. Ideally, it would be best if you spend beyond your means. Do not take a loan if it is not necessary. If you take a loan, you should use it to improve an asset or business purpose or something that would help you generate more income. These are just some of the many things you should keep in mind if you want to succeed in your financial goals.

What tools can I use?

There is no better tool for personal financial planning other than Excel. It gives you the flexibility to change your inputs, perform complex calculations, and produce comprehensive dashboards. Creating a simple personal financial plan template in Excel is pretty straightforward and manageable. Still, if you are too busy and do not know where to start or how to start, there are several templates you can find online, which would probably fit your requirement.

Conclusion: A plan is just a mere plan without proper execution

It is undeniably necessary to plan your finances accordingly. There could be various reasons you should start personal financial planning, which could be for your short-term goals like having a car or long-term goals like retirement. Whatever the reason is, you need to act and do it as early as possible. Being financially wise will help you become more aware of your spending and focus more on your financial goals. Again, a plan is just a mere plan without proper execution.