Another important area of my life that I am managing continuously is finance. Surprisingly, I realized that it is not naturally for everybody to work on this area and to have an overview about your finances. – This is why I am really interested in your procedures to manage your finances!
About 10 years ago, I started to list my monthly income and expenses in a simple excel table to have an overview about my budget. This table improved from year to year and I am still working with this excel file.
One of the biggest improvements – influenced by Robert T. Kiyosaki’s book “Rich Dad, Poor Dad” – was to categorize my expenses into fixed expenses, varible expenses, accruals, and savings. To be honest, I was shocked after evaluating the proportion of the categories and I started to develop measures to reduce my outgoing cashflow (liabilities) and to build up assets. But this is another topic to write about…
To get to the next level, a few weeks ago, I installed a finance software to learn how to manage my finances with software support. I noticed a few nice features, but I am still not satisfied with this software solution.
But anyhow – from my point of view – the most important thing is to have an overview. It does not matter if you are using high sophisticated software or a simple excel sheet. – So, what are you doing to manage your finances? Please post or email your procedures!