Mika
VIP Contributor
In order to manage your finances, you need to make a record of your income and expenses. One of the easiest ways to track your income and expenses is by making a balance sheet.
A balance sheet is a sheet where you list your entire debit transactions and credit transactions on two different sides of the same paper. In one side, you will list your debit transaction and on another side, you list your credit transaction. Debit means what comes in, and credit means what goes out. In other words, your income is debit transaction and your expenses are your credit transactions.
When you create a balance sheet, you will know how much money you are making every month and how much money you are spending every month. If your credit transaction is higher than the debit transaction, your finance is in a negative balance. Therefore, you will have to cut your expenses drastically in the next month.
A balance sheet is a sheet where you list your entire debit transactions and credit transactions on two different sides of the same paper. In one side, you will list your debit transaction and on another side, you list your credit transaction. Debit means what comes in, and credit means what goes out. In other words, your income is debit transaction and your expenses are your credit transactions.
When you create a balance sheet, you will know how much money you are making every month and how much money you are spending every month. If your credit transaction is higher than the debit transaction, your finance is in a negative balance. Therefore, you will have to cut your expenses drastically in the next month.
