Living Expenses Statement: Understand your spending habits

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How many times have you asked, “Where did all my money go?” You’re not alone. According to studies, only 1 out 3 of Pinoys are tracking their expenses. This is not just good news. Those who do track their spending have better chances in being able to save money from what’s left of their income.

That’s why I created a worksheet for Living Expenses statement.

A Living Expenses Statement is simply a record of all the things that you spend your money on. It is another tool for you to work out your current cash flow, which is important in personal finance. In this way, you can actually have a picture of your expenditures, allowing you to know your current financial status. I have already written about the importance of knowing your status as a step in financial planning.

And I have also made a worksheet for setting your financial goals to figure out what you ultimately want out of life. In addition, I have created a file for personal income statement to quickly show whether you are spending more than you’re earning. In this way, you can work out how you can include your financial goals to your everyday living.

Living Expenses

In income statement worksheet, you will see that there is a table for Living Expenses. But it’s just a summary. Wouldn’t it be nice to have a worksheet that captures almost all of your expenditures?

This is why I created the Living Expenses Statement. It works great with personal Income Statement. It allows you to determine and list down each single item that you spend your money on.

You can make the case that each of us has different spending habits. There is no one worksheet that can contain all types of expenditure that exists in the world. While that’s true, it can also be validly argued that we need to start somewhere. Moreover, the following are other crucial reasons why you should fill out the worksheet:

  • Spending history. By writing down where your money went, you can see a summary of your expenses. It can provide meaningful insights on the way that you manage your money, the kind of assets that you are buying and the items that are draining your finances.
  • Guide for budgeting. It is the backbone of your budget. As a financial story of your recent past, such as a month ago, it can allow you to estimate the level of savings from your current income. It can be then be very useful in shaping up your budget.
  • Guide for your retirement. When done correctly, it financial advisors can use it as a means of estimating your future retirement needs.

Tips in filling out a useful Living Expenses Statement

  1. Download the worksheet for Living Expenses Statement.
  2. Fill out the tables for different expenditure.
  3. Be as accurate as possible. Avoid under- or over-estimating each expenditure.
  4. Use past receipts, bills, and other such records to help you fill out the table.
  5. If you can’t find any written proofs of payments or purchases, try to come up with the a smart guess.
  6. Include other items that are not found on the table. you can use the “Others”.

Fixed costs

The Living Expenses worksheet allows you to think back and attempt to estimate the costs of the essential stuff, as well as the costs of other things and social activities that enrich your life.

Fixed costs are usually recurring. Their value are least likely to change. Your utility bills are good examples. The cost of power, gas and water remain relatively the same month after month, unless when there is price hike or you have a sudden surge in your usage.

Variable costs

Variable costs are tricky to write down. Most of the time, they are about the things that you don’t do frequently, and may involve the things that you can forego. A karaoke night-out with your friends is an example, as is the cost of hosting a dinner party in your home for your family and relatives. A medical emergency is also a good example. While you can guess how much you need in advance or come up with an amount mind, the actual costs vary on the day they happen.

They are called variable costs because they are not like fixed costs, which can be recurring and known.