Using Excel to Build a Budget BTA – 2012 Accompanies NEFE page 23

Building a budget Determine the specific period of time the budget will cover – weekly, monthly, annually. This will impact the income or expenses calculations. Title your budget: In cell A1 type the label Jessica’s Monthly Budget.

Building a budget In cell A3, type the label Estimated Income. Look at Jessica’s income, she has a weekly paycheck and earns interest on savings. In cell A4, type the label Paycheck (after taxes). In cell B4, we need a formula that will calculate the amount of her MONTHLY net pay: =((8*25)*.70)*4

Building a budget In cell A5, type the label Interest Earned In cell B5, type the value 15 In cell A6, type the label Total Estimated Income We now need a formula to in order to add up the total estimated income, so in cell B6 : =B4+B5

Building a budget Let’s do a little cleanup: ▫Resize column A to the exact width needed ▫Format the following cells  B4 – accounting  B5 – number  B6 – accounting ▫Select the range A6:B6 and place a top and bottom border on this range ▫Bold cells A1, A3, A6, and B6

Building a budget In cell A8, enter the label Fixed Expenses Bold cell A8 In cell A9, click the increase indent button and enter the label Savings (PYF) In cell A10, click the increase indent button and enter the label Car Payment In cell B10, enter the value 235

Building a budget In cell A11, click increase indent and enter the label Car Insurance In cell B11, enter the value 50 In cell A13, enter the label Estimated Variable Expenses Bold cell A13 Resize column A

Building a budget In cell A14, click increase indent and enter the label Cell Phone In cell B14, enter the value of Jessica’s estimated cell phone bill: 40 In cell A15, click increase indent and enter the label Gas In cell B15, enter the value of the estimated cost Jessica will spend on gas: 50

Building a budget In cell A16, click the increase indent button and enter the label Miscellaneous In cell A18, enter the label Total Expenses In cell B18, enter a formula that will add up all of Jessica’s expenses: =B9+B10+B11+B14+B15+B16 OR… use auto sum and click and drag to get the formula: =SUM(B9:B17)

Building a budget Let’s clean up again: ▫Select the range A18:B18, bold the range and place a top border and bottom border on this range ▫Format cell B9 and B18 as accounting ▫Format the range B10:B17 as numbers

Building a budget In cell A20, enter the label Total Income – Total Expenses In cell B20, enter the formula to calculate total income – total expenses: =B6-B18 Select the range A20:B20, bold and add a top and bottom border Format cell B20 as accounting

Building a budget Look at cell B20, Jessica has $200 left over after paying all her bills. We need to reallocate this money so that she is saving some and she has some for miscellaneous expenses. In cell B9 and cell B16 enter the value you feel Jessica needs for saving and for miscellaneous expenses. Look at cell B20. The value should now be 0 or “- ”.

Building a budget Add cell styles and themes using colors, fonts, etc. of your choice. RESIZE columns if necessary. Save this workbook to your P: drive as Jessica’s budget Print to NORWOOD 3600 and turn into your class folder