- Shopping Bag ( 0 items )
Sure you want to save money. We all do. But saving money is sometimes easier said than done. Did you know that there is a program probably already installed on your computer that can help you manage your money better? It's Microsoft Excel, part of the Microsoft Office suite. Manage Your Money and Investments with Excel can help you take ...
Sure you want to save money. We all do. But saving money is sometimes easier said than done. Did you know that there is a program probably already installed on your computer that can help you manage your money better? It's Microsoft Excel, part of the Microsoft Office suite. Manage Your Money and Investments with Excel can help you take control of your finances with Excel. Learn how to:
Benjamin Franklin said, "A penny saved is a penny earned." It's true, too—although we are not too concerned with pennies these days, each dollar, or ten dollars, or fifty dollars that you save is just like having that much more in your paycheck. I'm not talking about the kind of saving that results from denying yourself the pleasures or even some necessities of life. No, what this book is about is the savings you can realize by taking charge of your finances.
People start working with personal finance at an early age. You might start with just an allowance and then maybe in high school move onto a part-time job and a small savings account. Eventually you find yourself on your own with a job, a checking account, and maybe a family to help support. Car loans, credit cards, and a mortgage come soon enough for many of us. All these aspects of personal finance seem to be an unavoidable part of modern life.
How you approach your personal finances can have a big impact on your life. Some people seem to just muddle through from week to week while others make an effort to learn the ins and outs of personal finance so they can take charge of their own situation. Is it worth the effort? You bet it is! Let me explain.
First of all, when you don't master your own finances, you are almost sure to be paying out a lot in unnecessary fees and interest. I am always amazed to hear how much profit banks and credit card companies make from overdraft and late fees, interest, and other avoidable charges to the consumer. This money is coming out of your pocket! When you take charge of your finances, you can eliminate or at least greatlyreduce these unnecessary payments. That means more money in your pocket to spend or save as you see fit.
Second, many of life's major goals require some financial planning. Buying your first house, saving for Junior's college education, affording that fishing boat you have always wanted, looking forward to a secure retirement—these are some of the more important examples. Without planning, such goals might remain forever beyond your grasp.
My goal in writing this book is to provide you with the information and tools you need to take charge of your finances. It's not always the easiest thing to do—after all, bad financial habits can die hard—but it is very worthwhile.Why Excel?
Why did I focus this book on using the Excel spreadsheet program? Aren't there some specialized personal finance programs available? Please let me explain.
There are several sophisticated personal finance programs on the market, the best known being Quicken and Microsoft Money. They are excellent programs, but—and this is a big but—they try to provide every possible feature any user could conceivably want. As a result, these programs are unavoidably complex. And—unavoidably as well—you must buy them.
Excel, in contrast, is a general purpose data manipulation program that includes many tools for working with finances. Most importantly, it is already installed on millions of computers. Chances are that when you bought your computer, it had Excel already installed as a free extra. Or you might have installed Excel yourself for your personal or business use. Either way, there are millions of people around the world who can use the Excel templates provided with this book without any additional expense.Who This Book Is For
The people who want to take charge of their finances come from all walks of life, and not all of them are computer experts. That's why I wrote this book to be understandable and usable by almost anyone. As long as you know the basics of using your computer and Excel, you will do just fine.
The only requirement is that you have Excel installed on your computer. The templates that come with this book work with any of the recent versions of Excel, including Excel 2000, Excel XP, and Excel 2003.
Each workbook is provided in two versions. The one with Example in the name (for example, Check Register Example.xls) contains sample data that you can use to experiment with and see how the workbook functions. The one without Example in the name (for example, Check Register.xls) is empty and ready for you to start entering your own data.More Information and Updates
The publisher maintains a website for this book at http://www.quepublishing.com/title/0789734281. You can visit this site for more information about the book, to place orders, and to find links to Que's other publications. I maintain my own site for this book at http://www.pgacon.com/Books/ManageMoneyExcel.htm. Visit my site if you want to send me a comment and to check for corrections in the text and templates. Please note that even though I love to hear from readers, I can respond only to matters that are directly related to the book.
Peter Aitken Chapel Hill, North Carolina April 2005
© Copyright Pearson Education. All rights reserved.
Who This Book Is For
More Information and Updates
I. UNDERSTANDING THE BASICS OF FINANCIAL CALCULATIONS.
1. Taking Control of Your Finances.
Facing the Problem
What Excel Can Do for You
Why Excel and Not Quicken or Money?
Using the Worksheet Templates
2. Using Excel to Work with Money.
Entering and Editing Data
Formatting the Worksheet
Formulas in Excel
Excel and Money
Formatting Money and Percentage Values
Charting Your Course
3. Working with Basic Financial Calculations.
Calculating Loan Payments
Calculating Principal Payments
Working with Future Value
Using the Present Value Function
Calculating Interest Rate
4. Tracking Your Net Worth.
What Is Net Worth?
Assets to Include
Liabilities to Include
The Net Worth Calculator
Interpreting Your Net Worth
Keeping Track over Time
II. TAKING CONTROL OF YOUR BANK AND CREDIT CARD ACCOUNTS.
5. Managing Your Money with a Budget.
What Is a Budget?
The Home Budget Calculator
Getting Started with Your Budget
Living with a Budget
Analyze Your Spending
Live Within Your Means
Balancing Your Budget
Watch Impulse Buying
Look for Sales
Learn to Cook
6. Being Smart with Your Checking Accounts.
How Checking Accounts Work
Types of Checking Accounts
Other Checking Account Fees
Understanding Debit Cards
Be Smart with ATM Cards
Other Account Services
How to Get a Free Checking Account
The Checkbook Register Application
How the Checkbook Register Workbook Works
Getting Started with the Register
Keeping Headings in View
Reconciling Your Register
7. Getting the Most From Your Credit Cards.
How Credit Cards Work
Credit Card Interest Rates
Credit Card Fees
Credit Card Advantages
What About Debit Cards?
Hooray for the Grace Period
Using Your Credit Cards Wisely
Never Charge Anything You Cannot Pay Off
Use the Grace Period
Get a Rewards Card
Be Careful to Make Payments on Time
Mind Your Credit Limit
How Much Will It Really Cost?
The Real Cost Calculator
Why Carrying a Balance Is to Be Avoided
Paying Off Your Balance
The Payoff Calculator
Using a Credit Card for Cash Advances
Understanding Cash Advances
The Cash Advance Cost Calculator
III. FINANCING YOUR HOME AND CAR.
8. Understanding Mortgages-And Getting the One That's Best for You.
The Many Benefits of Home Ownership
Types of Mortgages
Traditional Fixed Rate Mortgages
Adjustable Rate Mortgages
Your Mortgage Payment
Other Mortgage Costs
Private Mortgage Insurance
The Tax Benefits of Home Ownership
Understanding Mortgage Amortization
How Much Can I Borrow?
The Maximum Mortgage Calculator
The Mortgage Detail Calculator
9. Considering Home Equity Loans.
What Is a Home Equity Loan?
How They Work
How Much Can I Borrow?
Home Equity Loan Cautions
Home Equity Calculations
10. Refinancing Your Mortgage.
Costs of Refinancing
Making a Decision
The Mortgage Refinance Breakeven Calculator
How to Use the Calculator
11. Understanding Escrow Accounts.
Escrow Is for Taxes and Insurance
Canceling Your Escrow Account
The Escrow Cancellation Calculator
12. Renting Versus Buying Your Home-Making the Right Choice.
Why Buy a Home?
Financial Factors of Home Ownership
The Down Payment
The Rent Versus Buy Calculator
13. Your New Car- Lease or Buy?
Do You Really Need a New Car?
Understanding Auto Leases
Advantages and Disadvantages of Leasing
Types of Leases
Lease Payment Calculator
The Lease or Buy Calculator
IV. MANAGING YOUR INVESTMENTS.
14. Learning the Fundamentals of Investing.
Exchange Traded Funds
Certificates of Deposit
Money Market Accounts
Risk Versus Return
Your Investment Timeframe
Choosing a Brokerage Account
Dividend Reinvestment Plans
15. Tracking Your Investments.
Why Track Investments?
The Investment Portfolio Workbook
The Holdings Worksheet
The Query Worksheet
Using the Investment Portfolio Template
16. Comparing Mutual Funds.
Choosing Mutual Funds
The Mutual Fund Comparator
17. Planning for College or Retirement.
Accounting for Inflation
The Inflation Effects Calculator
Predicting Your Needs
Saving for College
The College Cost Calculator
The College Savings Calculator
Saving for Retirement
What About Social Security?
How Much Retirement Income Will You Need?
How Much Do You Need to Save?
The Retirement Planner Workbook
A. Workbook Reference.
Chapter 4: Net Worth Calculator
Chapter 5: Budget Workbook
The Budget Menu
The Transactions Worksheet
The Transaction Entry Form
The Overview Worksheet
Chapter 6: Checkbook Register Workbook
The Register Menu
Sorting the Transactions
Calculating the Totals
Chapter 7: Real Cost Calculator
Chapter 7: Payoff Calculator
Chapter 7: Cash Advance Cost Calculator
Chapter 8: Mortgage Payment Calculator
Chapter 8: Mortgage Points Comparator
Chapter 8: Mortgage Tax Savings Calculator
Chapter 8: Maximum Mortgage Calculator
Chapter 8: Mortgage Detail Calculator
Chapter 9: Home Equity Line of Credit Calculator
Chapter 10: Mortgage Refinance Breakeven Calculator
Chapter 11: Escrow Cancellation Calculator
Chapter 12: Rent Versus Buy Calculator
The Input Worksheet
The Output Worksheet
The Chart Worksheet
Chapter 13: Lease Payment Calculator
Chapter 13: Lease or Buy Calculator
Chapter 15: Investment Portfolio Workbook
Chapter 16: Mutual Fund Comparator
Chapter 17: Inflation Effects Calculator
Chapter 17: College Cost Calculator
Chapter 17: College Savings Calculator
Chapter 17: Retirement Planner Workbook
B. Glossary of Financial Terms.