Personal Financial Management (PFM) Through Excel: 3 Basic PFM Templates

Evening Peeps / Salam Eid!

This morning, I scroll down my Facebook page try to look on financial management information. As the scrolling happens, I notice one ad selling personal financial management (PFM) in excel form around RM10. I'm not saying that it is not okay to buy one, but it is better if you do it yourself. I did go to a workshop to be a financial management trainer from AKPK Malaysia. They share some templates that you may use for your PFM through an excel which I am going to share in this post. However, you may use this information as initial guidelines for you to personalise to your own PFM system. All you need to do is to learn basic calculation within excel  (add, subtract, multiply, and divide) which you get them from youtube, and you are good to go. Try to use only one excel document with multiple sheets for better PFM planning and focus. 

Goals

You need to have three financial goals. Short Term Goals (STG), Mid Term Goals (MTG), and Long Term Goals (LTG). The period for each goal is up to you. As for me, I did 1-year term for  STG, 2-5 years for MTG and LTG is more than 5 years. Below is an example of STG. You may use this template for MTG and STG as well.

These goals are essential in your PFM to avoid you buying something expensive without any planning. Many people use their credit card to purchase these things, which leads to massive debt.

Information Gathering

Information gathering in PFM is a reality check. All PFM planners need to be honest and clear about their financial situation to plan and improve their PFM system. All assets and liability should be included here. Here is an example of information gathering. You may change it based on your own current situation/need.

Cash Flow Statements

Last but not least, a cash flow statement. This statement will gather the inflow and outflow of your money, so you are not under or overspending.

So there you have it, 3 basic statements for your PFM. Open your excel and re-write these statements so then you know what to include or not. Be honest and happy planning!