![]() The purpose of creating and maintaining a personal budget is to control your financial activities. Valuable Insights to Get from Household Budget in Excel Read more: How to Create a Personal Budget in Excel Then, highlight the key information as you like.Write down the following formula in C12 > press ENTER.We will use the SUM function to perform this task. See the screenshot below to know what it looks like. Then, you should record your actual income (column D) against these projected incomes.At the beginning of a time period, you will set a projected income (column C) from all your income sources.The next step is to record the actual income. Step 4: Compare Projected Incomes and Actual Incomes Under each category, you will find sub-categories. There are some broad expense categories like Necessary Expenses ( column C), Occasional Expenses ( column D), Regular Repayments ( column E), etc. The income sources are followed by the expense sources. ![]() ![]() Next, we have listed some common income sources in our budget. In our example, we will have a monthly budget. The time period of a household budget can vary based on an individual’s needs and preferences, ranging from a monthly budget to a yearly budget or even longer. This tutorial will guide you through the process of setting up an Excel budget that you can adjust to suit your needs, no matter how simple or complex your budgeting requirements are. But you can make it easier by using Excel. How to Make a Household Budget in Excel: With Easy StepsĬreating a personal budget can be tough, especially if you don’t use budgeting tools often. By creating and sticking to a budget, you can ensure that you live within your means and allocate your resources in a way that aligns with your financial goals. It is a record of all the money you earn and spends in a given time, and it can help you make informed decisions about your finances.Ī household budget typically includes all sources of income, such as salaries, bonuses, and investment income, as well as all expenses, such as rent or mortgage payments, utilities, groceries, transportation, entertainment, and savings. You may learn how to use Excel better in the process.Conclusion Introduction to Household BudgetĪ household budget is a financial plan that helps you keep track of your income and expenses on a monthly or yearly basis. If you use and customize any template for your personal budget, make sure you understand how it works and always double-check the formulas. The flexibility comes at the price of possibly deleting or messing up an important formula, or making bad assumptions. In my opinion, the #1 problem associated with using a spreadsheet for your personal budget is the chance that you'll make errors. it's just a disclosure to say that I don't ONLY use Excel any more.Ī spreadsheet may not be the best budgeting solution for everybody. I started out using Excel to do everything, but I began using Quicken after a friend showed me how easy it was to keep track of checks and credit card charges and download transactions directly from my bank. A budget is almost useless without tracking what you are spending. For expense tracking, you could use my Income and Expense Worksheet, Checkbook Register, or the newer Money Manager. Tracking your income and spending comes both before and after making a budget. For example, I like to use cell comments to explain certain budgeted items in more detail (such as the fact that in May, there is Mother's Day and a couple of birthdays to remember).Ĭreating a simple personal budget (even if it is only on paper) is one of the first steps to gaining control of your spending habits. The reason I use Excel when working with my home and business budgets is that it gives me complete flexibility to keep track of the information the way I want to. If you don't own Excel, then Google Sheets and OpenOffice are free options to consider. Microsoft Excel isn't free, but if you already own Excel, then you can create a budget without purchasing other budgeting software. 42 Effective Ways to Save Money Budgeting Tips for the New Year Why Use Excel for your Personal Budget?įirst reason: it's free.
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