How to Use Excel for Flexible Money Management

Create and save a new Excel workbook. Create 8 columns with the following headings: Month, Day, Description, Save, Debit, Credit, Checking Balance, Savings Balance. Bold the headings, and use the freeze panes function to freeze the top row so that you always see it at the top of your spreadsheet (Hint: look under the View tab in Office 2007, or under Window in older versions). Format columns D through H as currency (right click, format cells), and choose to have negative amounts show up in red. Use your vast knowledge of Excel to make the spreadsheet pretty if you like, but avoid the table function of Excel 2007 -- it is a pain!
Type the name of the current month in the first row of the Month Column, and type today's day in first row of the day column. Type your current Checking Balance and Savings Balance in the first row of the appropriate columns.
Now, enter the recurring bills (rent, car payment, insurance, credit card, cell phone, etc.) that are coming up between now and your next paycheck, putting each one on a new row. Type in the date you actually mail the check to pay a bill or the date it is debited from your checking account. Type a generic description of the bill (ex., 'Discover Card'), and type the bill amount into the Debit column.
Enter rows (without date) for Gas, Grocery, and Miscellaneous. You should have actually created a budget at some point, so that you know about how much money you have to spend on these things. If you like, you can split Miscellaneous into additional categories. Round each bill amount UP to the nearest $5 or $10 (ex., $70, not $66).
Type in the date of your next paycheck, describe it (ex., Paycheck) and type the pay amount into the credit column. Round your approximate pay DOWN to the nearest $5 or $10 (ex., $1025 or $1020, not $1028). On the next row, enter the description Savings, and type the amount you plan to save from each paycheck into the Savings column.
Now, enter the recurring bills coming up between this paycheck and the next, followed by the Gas, Grocery, Miscellaneous categories. Then, enter the next paycheck amount, followed by savings. Repeat until you have entered all of the info for the next six months -- you should be able to copy and paste most of this info to save time. Enter any additional income as needed, typing the amount into the credit column. Be sure to type the name of the new month at the appropriate place.
Now that you have the basic framework, you need to enter formulas into the Checking Balance and Savings Balance columns so that it will automatically calculate for you. For this example, I am going to assume that your headings are in row 1, your starting balances are in row 2, and your columns are A-Month, B-Day, C-Description, D-Save, E-Debit, F-Credit, G-Checking Balance, and H-Savings Balance. In cell G3, enter =G2-D2-E2+F2 This will subtract any savings and debit and add any pay to your checking balance.In cell H3, enter =H2+D2 This will add the amount you save to your savings balance.Copy and paste these formulas into all of the cells of columns G and H.
Periodically -- once a week or before/after any unusual purchases -- look up your ACTUAL bank balances and type them into the balance column on the appropriate date. Be sure that all of the items listed before that date HAVE already come out of your account -- if not, you may need to shift a row up or down. If you move any rows, re-copy or retype the formulas in columns G and H to be sure they are correct.
Now, just look over your balances. Will your checking balance go into the red in two months? If so, you need to cut something out! Spend less on entertainment, eat Ramen, or as a last resort, reduce the amount you are paying to your credit card or saving. I find that actually having to cut those payment amounts makes me really re-think sushi lunches!
If you keep going into the red, you need to take a look at your bank statement to see where you are overspending your budget.Try to keep your savings balance above $100 at all times. If you have a good bit more, increase the amount you are paying on your credit card or saving -- don't just let that money sit there burning a hole in your pocket, or you will spend it.
Delete past months, and keep planning at least six months ahead. When you get used to this method, you will be able to realistically plan your spending, quickly see when you are spending too much, and adjust so that you don't go into the red!
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How to Find Cash Flow An Make Money For Investment Property

Determine Your Mortgage Payment
Your mortgage payment is the most important part of the cash flow calculation. The 4 factors that determine your payment are, price of property, down payment, Interest rate, and length of the loan.
Try using an online mortgage calculator, just Google 'mortgage calculator'. Use it to determine a range of payments from the lowest to the highest.
For example, use best and worse case scenarios. In one scenario use the highest interest rate you could get. Next, use the lowest rate you could get.
If you want to make money with investment property, know your mortgage payment!
Determine The Expenses For The Building
Find out the yearly costs for taxes, insurance, waste removal, water & sewerage. If you want to buy investment property and make money you need to estimate these cost accurately. So do your research!
I purposely left out utilities such as phone, cable, heat, and electric. These bills should be paid for by the tenants.
Add Maintenance Costs
You need to set aside money each month to cover maintenance expenses. Such thing as, a new roof, water heater, windows, painting, rugs, need to be accounted for and included in your cash flow analysis.
Depending on the size investment property, set aside 1-4% of the value of the property per year.
Example, if the house is tiny use 1%. If the house is very large use 4%.
Predict a high maintenance cost for your cash flow estimation. This will insure your investment property makes money.
Rental Income
Determine how much money each unit can be rented for.
Compare your investment property to similar ones and find out how much people are paying for rent.
Once you determine a solid estimate....subtract 5-10%!!! For instance if rent is going for $1000 per month, subtract 10% or ($100). Use $900 for your cash flow estimation.
Discounting rental rates is a good way to avoid unexpected downturns in the market. It will also help lower your chances of loosing money due to inaccurate cash flow estimations.
FYI, CHARGE THE GOING RATE! Just because you estimated lower doesn't mean you have to charge less.
Determine Cash Flow Of Investment Property
ADD: Your rental income for the entire year
SUBTRACT: Step 2 and 3
SUBTRACT: Entire year worth of mortgage payments at the highest interest rate you can afford.
Whats left is how much you will make or lose for the entire year.
One last thing, subtract 30% for taxes. This is your net income or Cash Flow.
Is The Money Good
Make sure that your return is at least 8-10%!!!!
Example, If your down payment is $10,000 and your net Income = $1000, your total return equals 10%! ($1000 divided by $10,000)
You should make at least 8-10% on each investment property. Any returns lower than this is not worth your efforts. Plus, if your predictions are accurate, you can count on making more than just 8-10%.
Tips and Explanations
I did not include depreciation expense in my cash flow estimation. I left this out purposely to give you a conservative way to predict cash flow. If I included depreciation your return will increase. Yes, I said increase!
If your return is under 8-10%, negotiate the price of the building and the interest rates on your loan. Negotiation is a great key to making money with investment property.Finally, try to be conservative!!! This will ultimately make you more money than you expected. It also avoids make bad investments. Remember, if the numbers don't work...don't buy it!
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How to Catch Money in a Money Blowing Machine

Ask for the rules, but do not offer any suggestions. For example, don't ask, 'May I use both hands?' This will give them the opportunity to say, 'No.' Simply ask for the rules, and if they do not mention that you cannot use both hands, then it is allowed.
If you have time to prepare beforehand, apply hairspray to your hands and allow them to dry. This will make them slightly sticky, which will make snatching dollars from the air a bit easier. It also might be construed as blatant cheating — which it is — so keep this to yourself.
Target one bill at a time. You will be tempted to make a mad grab for every bill in the entire money-blowing chamber, but this will only make catching the bills harder.
Use both hands, if you are allowed. Spread your fingers wide for maximum money grabbing potential and also to allow air to pass through your fingers without pushing away the bills. Keep your hands about a foot apart in front of your face ready to clap a bill between them. Focus on one bill, then clap as fast as you can to capture a bill.
If you are only allowed to catch bills with one hand, make sure to spread your fingers wide for maximum coverage. Use your hands in concert, thrusting them together into masses of dollar bills. Focus on one bill at a time. Keep snatching constantly until you get a bill. Another good one-handed technique is to slam your hands into your body to trap bills or slam them against the walls of the chamber. (Just make sure this is not against the rules, or you will be disqualified.)
Stuff the bills into your pockets or whatever pouch the operators have given you immediately before focusing on another bill to snatch. Remember, you will only be allowed to keep the bills you have stuffed into the provided container, so don't hold onto bills too long. The quicker you can empty your hands, the faster you can snatch more bills.
Scoop dollars from the ground. Most operators will tell you beforehand that you must snatch bills in flight, but if they have not specified this from the beginning, look down and see if there are clusters of bills at your feet. If you are not allowed to scoop these bills with your hands, then kick and shuffle your feet to scatter them into the air so that you may snatch them.
Scoop dollars from the ceiling. The hardest place to snatch bills is while they are rising or falling, but once they hit the ceiling, they hover for just a moment before falling back down. Sometimes the best place to find and focus on easy-to-catch bills is directly over your head.
Money-blowing machine operators will force you to wear 'safety glasses' that are meant more to hinder your peripheral vision than to protect it, so make sure you swivel your head around to get the best view of the flying bills. Don't focus only on the bills in front of you.
Keep in constant pursuit of flying bills. Don't allow yourself to celebrate your victories or mourn your misses. Continue to snatch and grab until the operator makes you stop.
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