I found this proof in a StackExchange thread and found it pretty understandable and simple:
"The other answers give some sort of formula, like you were trying to do. But, the simplest way to see that the set of all finite subsets of $\mathbb{N}$ is countable is probably the following.
If you can list out the elements of a set, with one coming first, then the next, and so on, then that shows the set is countable. There is an easy pattern to see here. Just start out with the least elements.
$$\emptyset, \{1\}, \{2\}, \{1, 2\}, \{3\}, \{1, 3\}, \{2, 3\}, \{1, 2, 3\}, \{4\}, \ldots$$
In other words, first comes $\{1\}$, then comes $\{2\}$. Each time you introduce a new integer, $n$, list all the subsets of $[n] = \{1, 2, \ldots, n\}$ that contain $n$ (the ones that don't contain $n$ have already showed up). Therefore, all subsets of $[n]$ show up in the first $2^{n}$ elements of this sequence."
I understand how it applies for finite subsets of N, but I cant really pinpoint of why it would not apply to a set of all subsets of N. We could continue this scheme for ever, couldnt we? I assume that I think in a wrong way about infinity but I am not quite sure. Any help is greatly appreciated!