Nathaly Ambre June 4, 2021 Spreadsheet
I don‘t think so. My husband and I weren‘t a great married couple but we were excellent business partners. We almost never, actually maybe NEVER, fought about money. We agreed on how to raise our kids and were always honest about our finances. He made a lot of money and I had some money of my own from my grandmother and would inherit when my parents died. I knew that we would be able to sort through these things better on our own. Most significantly, he LOVED to make spreadsheets and certainly would not be willing to pay someone else make one for him. I did some research on the internet to see what our options would be. I knew we couldn‘t do it ourselves but that we would need some assistance because our finances were complicated. I learned about divorce mediators, professionals who work with couples at an hourly fee to help them navigate the process. It sounded like it would work for us so we agreed to find one. And we did. Well, I did.
In a well-designed spreadsheet, any output can be calculated from the raw data. However, that‘s not always enough. Sometimes the output is fixed and the raw data is variable. Let‘s say you run an investment company and want to offer your clients a fixed return. An Excel expert could create a very complex model to calculate the likely return on investments over a fixed period. You could then calculate the internal rate of return being offered to clients. The problem is that you‘re not interested in the return offered to clients; that is, after all, fixed. Instead you‘re concerned with how much money you expect to draw from the investment fund, whilst still offering your investors a satisfactory return. If you have $1 and owe investors a quarter, you can calculate your profits using a simple formula.
When Microsoft Excel is used to manipulate, store and analyse data it can become extremely difficult to manage, let alone efficiently work to produce any meaningful insights. This is because with data sets large and small, the data must be meaningful, logical, structured, internally consistent and clean. This holds true regardless of whether the data has been imported into excel from another system or manually entered. In this computing age, most people know that for any data set to be useable it must first be relatively structured and clean. A spreadsheet and its table layout naturally encourages data to be somewhat structured, however ensuring data is clean is also difficult.
Lester loved his numeric universe, but this was not how he had envisioned his life unfolding; flying hither and thither from his hometown of Hershey to wherever his firm wished to send him. Just because he was 38, single, and still living with his folks didn‘t mean his employer should take advantage of him which, in fact, his company did on a regular basis. After all, Lester had other important interests, too. The ”Four Bs” he called them: Botany, bowling, bugs and Buddy Holly. Myriad plants crowded his tiny room in his parent‘s house, forcibly sucking carbon dioxide out of anyone who entered. Bowling trophies – ranging in size from tiny silver cups to massive bronze edifices shaped like the Empire State Building – claimed space not dominated by flower pots, planter boxes, and hanging baskets.
He grossed $2,000 a week for his bosses, and earned slightly less than $500 for himself. Still, the wages kept him in seeds, bowling shoes, stick pins, and a Platinum Buddy Holly Fan Club Membership. Lester‘s favorite word was ”crapola,” and he applied it to the ball bearing factory‘s antiquated data processing system in coats as thick as the olive drab membrane clinging to the smudgy glass before him. ”You piteous piece of crapola!” he‘d hiss at the computer when error messages flashed across its screen or its ancient system locked under the demand of crunching numbers to the tenth decimal point. ”Some day I‘ll throw your sorry ass into one of those melting pots out there!”
Here‘s where the expense sheet gets complex. All of your categories of spending go in column A. Get as detailed as you like, or keep it really simple and just put the basic categories. Generally, the more detail the better. it‘s also helpful to have categories for your categories. A Utilities category for your power, gas, water, etc, categories. Again, detail is good, but be wary of going into too much detail. Column B is where you‘ll put the amount that you‘re budgeting for that category. Column C, how much you‘ve spent on that category to date. If you like (or are a statistics junkie) you can add columns for % of budgeted amount, and % of total budget as well. For our simple budget, we‘ll just leave that out for now.