Save it: Spreadsheet
It’s better to keep track of your budget in the most organized way. You don’t want to write your budget on a piece of scratch paper that might end up in your trash, the gazillion receipts in your wallet or someone else’s hands. Creating a spreadsheet is one of the basic steps in organizing your budget. (Read| Moolah Management: The Basics)
Here’s a simple step by step guide in making your own budget planner using Microsoft Excel:
1. In the first column, list down your income and expenses (as shown on the image below). I color-coded the fixed expenses in blue; that way it will be easier to identify and customize your list of expenses.
In the same column, add “Total expenses” and “Ending balance”.
The second column is where you write the value/amount for each label.
2. Next, add up all your expenses using a formula. Just drag from the value of your first expense until the “total expenses” cell. Then, click the Auto-Sum button as shown below.
Now you have the total amount of all your expenses.
3. Next, we create a formula for your Ending balance which will be the basis of how much cash is available from your income/allowance that can be allocated to your other expenses.
-Click on the 2nd cell of your “Ending balance” row (In the figure below, Ending balance is at B17). We will use a simple subtraction formula.
=(Click on the value of your income – Click on the value of your total expenses )
Click on the photo for a clearer version.
5. Hit enter …and voila! You have the amount of your ending balance.
6. You can start adding values to the other expenses. Prioritize the fixed expenses and then the rest of your list. You can even sort your expenses according to priority or by type/kind. It’s all up to you!
Notice that when you enter a new value on the expense column, the value of your ending balance changes.
7. Lastly, if you want to add a new type of expense on your list, just right click on the blank row after the other expenses and click “Insert“.
Here’s a short list of more expenses:
– Savings ( Yes, treat savings as part of your expenses. We’ll talk about that some other time.)
-Things your saving up for (e.g. a new computer, car, more shopping, etc.)
and the list goes on. Feel free to comment if I missed something.
8. Save it on your PC, smartphone, tablet, etc.
I hope that made sense! Just drop a comment or email if ever you have questions, more questions, or you just want to spread some love. Tell me if this helped you!