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Previously we released our Proof of Cash template which is designed to cover a full year with one reconciliation.  However,  sometimes completing a reconciliation as complex as this requires it be completed on a more granular level.  Which is why we've created a template that will allow you to complete the process monthly - plus each tab is linked to the previous tab which will aid in completing the process efficiently.  

Read More and Download the Monthly Proof of Cash Template here.

 
 
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For most Americans, net worth has seen tough times over the last few years.  The Associated Press reported on December 8, 2011 that the average household net worth fell by 4% recently.  What about your personal net worth, has it gone up, down, or stayed flat?  Is it positive, or negative?  What should it be and what does it mean?


The Basics:
Lets start with the basics - net worth is simply your assets (cash, investments, vehicles, housing, etc) less your debts (credit card, mortgage, etc).  Most people can figure their net worth out in less than 30 minutes, yet few people seem to track the progress of their net worth.  

Interpreting Net Worth:
Generally, a positive net worth is better than a negative net worth - the larger the net worth becomes the more financially secure you become.  A lot of people look for rules of thumb (i.e., if I'm X years old and my income is $Yk then I should have a net worth of $Z); however, I've yet to find a rule of thumb that can be applied as a broad stroke and really make sense.  I agree it is interesting to see exactly how you stack up.  In fact, as I was recently preparing my own net worth calculation, I was looking for some net worth statistics just to see how my personal balance stacked up.  Now, you can't simply look at the numbers reported here, you have to consider the time from which they represent, what was the market doing during that time compared to now etc.  

If you're anything like me, then you too may find it's fun to see how you stack-up against these figures.  But really, what does your net worth say about you?  Well, here are some general interpretations:

Negative Net Worth -

 
 
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Simple calculator to convert APY to APR or convert APR to APY.  Download this calculator here.

 
 
Do you have an emergency fund established?  Maybe you don't because you're not sure the best way to begin.  Or maybe you have a well established emergency fund, and want to know if you're maximizing the returns without introducing unnecessary risk.  Find out how to get started, what to do once established, see how we've allocated our emergency fund and what type of risk/reward we're getting.

My Story
Several years ago, my wife and I decided that we were "financially flabby" - a conclusion we came to after reading The Total Money Makeover, by Dave Ramsey.  At that time we had just recently purchased a new car, we used credit cards for all of our spending needs, and thought so long as we were putting "some" away for retirement each month we were ahead of the game.  We were doing so much, so wrong!  

As we began to educate ourselves, we realized that buying a brand new car probably wasn't the best idea given our finances, our credit card spending led to very loose spending and at the end of the year (or month for that matter) we really couldn't figure out where all of our money had gone.  We also realized that we could be saving so much more if we simply cleaned up our spending habits.  Probably more importantly, we figured out that we really didn't have an emergency fund in place should something unexpected happen.  Knowing it was time for a change we immediately started keeping a personal budget and started working on establishing an emergency fund (using Dave Ramsey's The Seven Baby Steps).  Here are the first baby steps 3: 

 
 
There are some simple things you can do in order to reduce the size of a large Excel file and speed up operation.  Below are some quick and easy steps to reduce Excel file size. (Note, before you begin it's a good idea to have a backup of your file just encase something goes wrong).

1.      File Type - If you're using Excel 2007 or later, ensure your file is saved as .xlsx – not in Excel 97-2003.  If that doesn't cut enough into the size of your file save it as an Excel Binary Worksheet (.xlsb).  I just had a file that was 12.6 MB in .xlsx cut to 6.72 MB when saved as .xlsb.

The following will need to be done on each tab:

2.      Check Unused Cells – frequently "blank" cells aren't really blank and need to be deleted.  You can check for the "last used cell" in your workbook by pushing Ctrl + End, this will take you to the last used cell.  If that's not the end of your cells with data then you can clean up those unused cells.  To do this:

a.       Select the first blank column, hold down Ctrl + Shift and push the right arrow (this will highlight all columns).  Then, right click and select delete.  Do the same for rows; go to the first row after your data, select it, hold down Ctrl + Shift and push the down arrow.  Rick click and delete.

b.      You can also use the Go to Special Function.  Press F5 > Special, then select "Blanks"; after all blanks are selected select "Clear All" from the Editing tool bar under the Home Ribbon.

3.      Remove Formatting – Unnecessary formatting can cause a file to be unnecessarily large.  Select all (Ctrl + a) and the select "Clear Formats" from the Editing tool bar under the Home Ribbon.

4.      Clean Up Formulas – To many formulas will cause Excel to get bogged down, try the following:

a.       Set your Excel Options so that workbook calculation is manual.  File > Excel Options > Formulas > Manual.

b.      Review your formulas to ensure you don't have a lot of unnecessary formulas, or formulas that are considered volatile (i.e., always recalculated, even when precedents remain unchanged).  Volatile functions are Randbetween( ), Today ( ), Offset ( ), Index ( ), Info ( ) etc.

Save after each step to see if the file size is improving and ensure there is still a need to continue to improve file size.

 
 
Need to keep track of your blood pressure?  Use this log - it allows you to track systolic blood pressure, diastolic blood pressure, pulse, the time of day the reading was taken as well as notes.  See a graphical representation of your log.

Read more and download. 
 
 
This Excel add-in will remove any unwanted spaces at the beginning or end of contents in a cell.  Read more about this add-in and install it here.