I update my spreadsheet once per week and use it for a few purposes: 1) make sure all the bills get paid each month and balance our checking and savings accounts; 2) track where all the money goes (line item tracking for cash, credit cards, checks, and on-line bill pay); 3) annual balance sheet check-up; 4) amortization tables for auto loan and mortgage; 5) keep track of total cost of “events” like a vacation or house project; 6) real-time picture of how many months of expenses our savings represent in the event that we both lose our jobs and 7) what-if analyses for major decisions or life events.

Having all this info in one place (and backed-up frequently) makes it very easy to track all things financial and provides some peace of mind that our finances are under control.

About once a month I spend 10 minutes creating a budget spreadsheet from scratch.

I do it to do what if analysis and to see if I come up with anything new compared to the actual budget.

I find the more you think it through, the easier and more motivated you are to act.

So I got myself an iPhone app called WalletWhiz which allows me to track my expenses as I spend them. I hope it would really help me be disciplined about my spending habits and help me keep track of my personal savings goal. Thanks for sharing your own tips on budgeting!

This year was the year we hit black ink even if our house became worthless. That is a very nice feeling. I don’t think it will ever happen that we’d be in the black if the house and the market lost all value, because that would be a pretty unbalanced portfolio – but it’s still nice to see the “real” vs. unrealized assets.

I have used Quicken to calculate and track a lot of this information including net worth and budget. However, I think there are advantages to going to the spreadsheet occasionally. I feel “what if” scenarios are much easier in the spreadsheet. It is easier to see how things look after paying off specific debts, for instance. Or factor in multiple purchases or expenditures in the future.

You can generally do that with Quicken (and I assume with Mint as well), but the spreadsheet gives some freedom about moving things around easier (but of course some freedom to calculate it wrong as well). Like J. Money said, whatever works best for the individual.

@AustinG – I’ll agree that Mint works great as well. While I prefer to stick to more manual stuff (it helps “stick” better with me and forces me to look at everything), it’s important to find a way that works best for YOU, as an individual. Once you got that gameplan in check, hold on tight and keep rockin’ it out!

Really good article here.

Good idea framing the recommendation from the psychological/emotional angle–that’s what it’s truly about. We tend to think of budgets as being about money but nothing could be further from the truth. The true state of our finances can find us looking into some deep crevices in our minds! “Where lies your treasure, there too lies your heart.”(Mt. 6:19)–truest words ever spoken!