I do a monthly, quarterly, semi annual, and annual spending analysis. I know it seems like overkill… My reason for this is to give me a better insight on how we spend our money and gives me the opportunity to change our spending habits if need be. I am solely responsible for what happens to the money in my household so, if you have the same responsibility, it is also a great tool to help your significant other understand how you spend and where it is going.
Monthly Spend Analysis:
To do a monthly spend analysis you’ll want to use my monthly spend log worksheet, this is crucial aspect in making this work, so you can read more about it and download the included worksheet here.
You’ll log all of the information into the monthly spend analysis worksheet, which you can find here.
On the worksheet you will find a place to write down all of the sources of income you have had for the month. This can include paychecks, unearned income (such as Social Security Benefits), cash received, any and ALL money that has come into your home in the last month. You also need to include the beginning balances of any checking accounts, available balances on credit accounts, and any cash you had on hand at the beginning of the month. To get the beginning balance by go back to the 1st day of the month in your registers and enter the balance into the worksheet. Then total all money in and enter it into the “Money In” section on the worksheet.
Next write down all the bills and unexpected bills you may have paid for the month and total them.
There are 4 sections for categories that you want to get a little more in depth with. You can write the category title and specifics of what you spent the money on. Like for instance with my wants category I write down specifically what I purchased and the amount. Total each section.
For any of the categories that you don’t have specifics for just write down the category title and amount spent in the “Money Spent in Other Categories” section and total it.
Add together all totals and write it in the column next to “Money OUT”. Next subtract the “Money OUT” from the “Money IN” to get your “Total Left”.
Find your beginning balance for the current month. Find this by totaling the amount of money in all bank accounts and on hand at the beginning of the month. Put this total in the column next to “Beginning Balance”. This total should match the “Total Left” line. If it doesn’t, you are missing money. That’s were the “Missing Money” line comes in. To get the Missing Money total move the “Total Left” amount to next “Total Left” line. Subtract your “Total Left” from you “Beginning Balance” to get your “Missing Money” amount. Missing Money can happen for a number of reasons. Most likely it was a miscalculation or a missed transaction that didn’t get logged. Don’t beat yourself up over it. I usually don’t stress unless it’s over $50. If it is though I can usually find it by looking back through my register, spend log, and receipts. It can turn into a big task though.
Quarterly, Semi Annual, and Annual Spend Analysis:
These are basically all the same concept.
You take your monthly spend analysis (however many months you are working with) and fill in the data from them on the worksheets. Here are the Quarterly and Semi Annual worksheets. If you have done a quarterly analysis use the data to fill in your semi annual, for an annual you can use your quarterly or semi annual worksheets. Here is the Annual worksheet.
The data on these worksheets consists of totals of all categories, totals of money in, and totals of money out. They are self-explanatory sheets and are pretty easy to understand if you have used the monthly spend analysis worksheet
The average column is optional, I use it for other purposes, such as budgeting. If you want to use it it’s pretty simple to figure. You divide the total of each category by the number of months on the worksheet. For example: If you are doing a quarterly analysis you would take the total of your “Groceries” column and divide it by 3 to get your average.
If you have any further question, concerns, or comments you can contact my via my contact page here or scroll way down and leave a comment. If you found this post useful feel free to hit the like button or share on social media. Thanks for reading.
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