How to Use Excel for Your Finances

Step-by-Step Guide

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   Step 1: Decide on your level of detail; for example

   An inventory is a list of all the assets you own that are worth anything.
   
   To keep it simple, you should only consider assets that are of relevance; so list cars, houses, motorbikes, bank accounts, CDs, 401-ks, etc.; but skip the skirts in your closet, the books in your shelves, or the old TV. , Be sure to be realistic; even though you paid 1299 $ for that plasma TV, what could you seriously get if you sold it now? Most household articles loose 50% right when you take them out of the shop.
   
   On the other hand, cars lose about 50% every three years, and houses only a small percentage if at all.
   
   Of course, bank accounts and cash is worth its current total. , Spend some time to make the list complete; don't leave out things because they are 'kind of special' or 'everyone has them'
   
   or 'they will be soon gone'.
   
   For everything you owe, put the amount in the value column as a negative number. , This is your net worth. ,
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   Step 2: considering everything worth more than 1% of your yearly income is a starting point.

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   Step 3: Build an inventory in the first column.

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   Step 4: Estimate the current value for each item

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   Step 5: and put it in the second column.

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   Step 6: Add to the list all your debts

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   Step 7: mortgages

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   Step 8: credit cards

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   Step 9: and other open payments of relevant size.

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    Step 10: Build the total of all estimates.

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    Step 11: If you would like it more detailed

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    Step 12: go back and add more lines for smaller things

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    Step 13: of both groups (owned and owed).

Detailed Guide

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