Budgeting is one of the necessary evils in personal finance. It’s not fun, and takes time but the returns you get from doing this and getting your financial life quantified will far outweigh the one or two hours spend making a budget. However people are usually at a loss on what to use to budget. Most people are buying and downloading apps in order to have their budgeting streamlined in such a way. However the real king of the budgeting tools is pretty much on every computer already, and if you work an office job you probably use it everyday, all day.
What could this budgeting super tool be? Well as you may have already guessed it’s Excel. Why is excel so good for budgeting well, the reason for this is the fact that it’s limitations rest with the creator of the budget instead of the software itself. It’s an inherit problem with budgeting apps and software is that they are programmed for budgeting but are limited by the program. Excel on the other hand wasn’t made for budgeting it was simply made as a spreadsheet software and thus is only limited by the user creativity.
Another great function of using Excel for budget making is the fact that it fosters collaboration. With apps the budget creator is really the only one who can make and edit the budget. Also Excel allows the user to do a bunch of fancy things like conditional formatting to “pretty up” the spreadsheet and make it more readable in case you’re having to prepare a budget to get a loan for example.
Disclaimer: I am not an financial advisory professional and this is not financial investment advice. Any financial decisions should be made with the help of a financial advisory professional.