What Chart Types Are Useful for Tracking Finances?
There are a few different chart types that can be helpful for tracking as you figure out how to improve your finances. The most common and useful ones are line charts, bar charts, and pie charts. Line charts are best for tracking overall trends, while bar charts are better for seeing specific data points. Pie charts are useful for showing proportions. Keep reading to learn more about each of these chart types and how to use them to track your finances.
A column graph can be used to track any type of data over time, but are often used to track financial data. This is because column graphs clearly display changes in data over time, which makes it easy to see trends in your financial data and to compare different periods of time. In column graphs, the height of each column represents the value of that data point, and the width of the column represents the duration of time being graphed. This makes it easy to see at a glance how the data changes over time.
Sunburst charts are useful for tracking finances because they can show how money is distributed across different categories. The chart starts with a circle in the center, and then splits into smaller circles that represent different categories. Each of these small circles has its own color, and the size of each circle is proportional to the amount of money in that category. This type of chart can be helpful for seeing where most of your money is going, and it can also help you identify areas where you could save more money.
Bar charts are useful for tracking finances because they allow users to compare data points side-by-side. This type of chart is especially helpful when trying to track changes over time, as the user can easily see how one data point compares to another. Additionally, bar charts can be used to compare multiple sets of data at once. For example, if you wanted to track your monthly expenses, you could create a bar chart with the categories of expenses on the x-axis and the monthly totals on the y-axis. This would allow you to see how your spending changes over time. Additionally, you could compare your monthly expenses to your monthly income to see how much you are spending versus how much you are making.
A scatter plot is a graphical tool used to display the relationship between two variables. The data points are plotted on a graph, and a line is drawn to connect them. The strength of the relationship is indicated by the direction and slope of the line. Scatter plots can be used to track finances by plotting income against expenses. The points on the graph will show how much money was earned and how much money was spent in each month. A strong positive correlation will indicate that as income increases, so does spending, and vice versa. A strong negative correlation will show that as income decreases, so does spending.
Treemaps are a visualization technique that can be used to track finances. A treemap chart is a two-dimensional chart in which the data is arranged in nested rectangles. The size of each rectangle corresponds to the value of the data point, and the color of the rectangle corresponds to the category of the data point. This type of chart is especially useful for tracking spending over time or comparing expenses between categories.
There are a variety of different chart types which can be useful for tracking finances. Overall, using charts can help to improve visualization of financial data, and can help to identify trends and patterns.