Create Your Own Personal Budget in Excel from Scratch: Better Finance, Accounting & Productivity | Cal Hyslop MBA, University Instructor | Skillshare

Create Your Own Personal Budget in Excel from Scratch: Better Finance, Accounting & Productivity

Cal Hyslop MBA, University Instructor, Work Harder on Yourself than Your Job!

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5 Lessons (37m)
    • 1. What is Budgeting All About?

      2:42
    • 2. Let's Get Your Income Set Up

      10:07
    • 3. Let's Get Your Expenses Entered

      13:34
    • 4. Put Together Your Summary

      5:30
    • 5. Finalize and Test Your Budget

      5:04
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About This Class

Are You Keeping Track of Your Income and Expenses Each Month?

If not, then this lesson is crucial for you. Get a budget today!

Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.


Budgeting is simply balancing your expenses with your income. If they don't balance and you spend more than you make, you will have a problem. Many people don't realize that they spend more
than they earn and slowly sink deeper into debt every year.

If you don't have enough money to do everything you would like to do, then you can use this planning process to prioritize your spending and focus your money on the things that are most important to you.

Why is Budgeting so Important?

Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt.

And if you like this class, be sure to check out my class on the Top 12 Core Skills everyone needs for success and my closely related course on Financial Independence (FIRE) below: 

  1. Core 12 Life Skills - https://skl.sh/2U2VFQs.
  2. Financial Independence (FIRE) - https://skl.sh/3edp95G 

For a list of more helpful classes, visit my profile page at https://www.skillshare.com/user/calhyslop

Transcripts

1. What is Budgeting All About?: Well, Hello, ladies and gentlemen. And welcome to Excel money. Let me take a quick moment to introduce myself to you. My name is William is a but I go by cow. I have an MBA from the United States, have lived and worked in the USA and Asia and have been a university instructor since 2007 for the second ranked university in South Korea. And this is one of many crucial lessons I have compiled for you to help you become more successful and happier in life today in Excel money, we're gonna go over a personal budget. Now, what will go over specifically includes three major sections. Number one. What is a budget? Just in case you didn't already know. Secondly, why is budgeting so important to get a handle on your personal finances? And number three, how are you going to be able to make your own personal budget using excel? So let's jump into it. So what is about it? Well, budgeting is the process of creating a plan to spend your money. This spending plan is called the budget. Creating this spending plan allows you to determine in advance whether you'll have enough money to do the things you need to do or the things you'd like to do. Budgeting is simply balancing your expenses with your income. Now, if they don't balance and you spend more than you make, you'll have a problem. Many people don't realize that they spend more than they earn and slowly sink deeper into debt every year. If you don't have enough money to do everything you would like to do, then you can use this planning process to prioritize your spending and focus your money on the things that are most important to you. So why is it so important? Well, since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money to do the things you want and to get the things you need. And following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you're currently in debt. So how do you make your own personal budget today? Well, let's go ahead and get into Excel and go through the process together. So get ready to open up your Excel spreadsheet and follow long as we progress throughout making your personal budget 2. Let's Get Your Income Set Up: Okay, Later, gentlemen. So let's start off by opening up our Excel spreadsheet. And before we do any work, let's save it. So let's ghost file Save as Give it, ah, name, say, personal budgets and we'll save to the desktop to make things simple. Let's go ahead and expand and get started. So here we have our Excel spreadsheet and we have all of these boxes in here or cells. And let's make it look a little bit better. Let's make the background look a little simpler. So let's go up here to the top left corner. Let's click here and let's give it a background color. Here's our color box here. White is nice and neat, so click white or any other color. And there you go. Look, things look much better now. We want to start off with giving it a name, So maybe let's go down to a two right here. Give it a name. What would be more fitting than personal? Monthly budget? Fantastic. Maybe make it a little bit larger. Let's go to 24. Looks good. Let's skip down one too, and get started with our income versus expenses input. So remember your income. Let's go cat block here. Income minus your expenses is the money that you have left over or the money that you lost . So let's start out with putting in the income that you're making in your sources of income . Then we'll come over here. We're gonna have to Mawr columns One is your budget. This is what you expect to make as far as your income goes for any particular month. Then we'll put in your actual. This is what you actually made for any particular month, and then we want to know the difference. Now, this is nice to know for your income, but it's especially nice to know for your expense categories, but nonetheless let's entrance. So we have these 1234 columns. Pretty simple. And that's basically what we're going to do for this entire spreadsheet. So to make this a little easier, let's make this a little prettier. Let's highlight these four areas here. Let's give them a color. I like the color green because income is money that you're making. Maybe give the font a white color cause it shows up easier, bold it and let's make it size 16. How about that from here. Let's expand a little bit up to the end here so we can have plenty of space to write. Are line items and let's double click. See how the CE is cut off. Let's double click here do and it'll automatically adjust the with. So here we have our income budget, actual indifference. Now let's go ahead and put in some line items here. What your sources of income? Well, most of us maybe have a job, right? So, job job. Let's say one could be your wages in your tips. Maybe you have another job job to. Perhaps most of us have one job or two. This is our greatest source of income, but we do have room for other line items, just in case we have other sources of income. So what ifs of other options? How about interest income? If you're making interest off any particular investment, how about dividends? If you're making dividends off of stocks and gifts received, did you get any monetary gifts from relatives or friends, then perhaps refunds and reimbursements? If you have received any, maybe. Maybe you're going to transfer some money at sometimes from your savings to your bank account, your checking account or your income account. And let's leave a little bit room for other, just in case, Who knows what could happen? So we have our line items here. Now we want to put in the numbers that we're gonna budget here. The actual numbers for the month here and the difference. Pretty simple stuff, simple calculation. So let's go ahead and put in some ideas. Let's say we're going to budget $3000 now. Notice that this $3000 is just a number. We want all of these to register as dollars that say as currency. So let's go ahead and highlight these three columns, right click go down to format cells. It was put in accounting. Here you can choose your symbol, for example, the dollar sign and the number of decimal places. And we'll we'll keep with two click OK, and while ah, you've got $3000. Even now, if you make an actual amount of 2000 800 what would be the difference? Well, let's make this a simple calculation. This is where we're gonna put in our formulas. So for your income, what we're going to do here is the difference between these two were going Teoh, do a little reverse logic. We're gonna go here. We're gonna hit the equal sign. They would go to actual click in that box, then click, then minus sign, and then go to your budget and click Enter. Here we see a $200 difference. This is a negative difference. You actually made $200 a less than your budget. Good luck. Next time, let's do the same thing here. We're going to scroll down, so make sure all of these numbers have same calculation. We're going to click in this box under differences and this little square at the bottom, right? We're gonna click it and hold it and scroll down all the way. So we're in line with what's over here, and this will automatically incorporate whatever your budget is to your actual not to make this look a little better. Okay, so what we'll do is we'll highlight here. Now we want to make sure all of this looks decent. So for data entry, we want to make it clear to where we want input that particular data. So let's go ahead and give all this a nice border will go down to all borders and while look, this is where we're put in our information now, in this area of differences, let's go ahead and give it a grey box. So it's easy. It's easier to differentiate between these two sections here, let's give it maybe a light gray and that looks pretty good. Next, we need a total right. So let's put in this bottom box right here. Total income. Give it a cap blocks. We're gonna do data entry here data entry here and then the difference. So let's go ahead, and we can click on this and scroll all the way down here. Let's give this area a grey box altogether, and your total will be all of this together and all of this together. So your total from budget is going to equal auto some. Let's highlight all this here and then click. Enter your some everything together. Let's do the same to the next car and the next call in the next calm. Now I made a little mistake here. Let's clear that out. So we want the same thing from here to here to here, so just highlight this click on that box again. We're gonna click the little green square at the bottom, right. Hold it down and pull it across that. Ah, there you go. All these numbers come into play. Now, let's differentiate in this entire income box from everything else that we're doing. And let's just highlight here and give this its own little border. So let's let's choose maybe a bottom double border here. Whatever he wants. Fine. I'm going with bottom, double border and while Ah, there we go. This looks pretty good, don't you think? So we're well on our way to creating a budget. This section here is starting off your budget and putting in your income area. Now, you might want to take a quick break. Uh, get a drink of water, cup of coffee, Do whatever you have to do, and then let's go back and get into putting into our expense categories. OK? Talk you soon 3. Let's Get Your Expenses Entered: Okay, Now that we've done the personal monthly budget section of income, let's go ahead and jump into the section for your expenses. Great. So let's go back to our Excel spreadsheet. And here we are with our income area here. We want to go one to skip a space and let's go ahead and put in our expenses. Let's start with some of the major expenses home expenses. So let's cap lock and go home expenses right here. Scroll over and again. Budget actual indifference. So project actual difference this time instead of green. Let's choose another color because it's an entirely different category. How about let's go with something like, Let's go with a little bit of orange white again. Bold. Now, up here it was size 16. So let's do the same sighs 16. Okay, we're on our way. So what would be some lying items for home expenses First, maybe mortgage or rent, then maybe home insurance. If you have that electricity, gas and oil, maybe your water bill, which could include sewer, one second sewer and trash, maybe home phone if you guys still have a home phone. Everyone has smartphones these days, right? Cable Internet, maybe furnishings and appliances, lawn and garden maintenance in supplies, improvements. And, as usual, let's leave a a section for other, just in case. So we have these line items here we want to put into our budget amounts. Same thing as usual. Let's go down and give it a border. And over here, we want to do the same. Thing is we did up here. So just about the same. Let's go ahead and make it a little difference. A little different. And this are equal sign. Let's go over here to budget than the minus sign and the actual and then hit enter. So when we put in, maybe we expect our monthly mortgage. Let's say I'm just randomly choosing something. Let's go $500 And for whatever reason, I'm sure this wouldn't be the case. But just for an example, let's say it turns out to be a little more expensive, like 110. You've gone over by $10. Thes brackets here will show that for you. So let's highlight here as usual, um, this where the area that we put in the equation click on that little green box at the bottom rights groups hold It ends well, are for me to do this. Okay, Hold it. N scroll down. So we propagate our equations here. Now we want the same background as we did at the top. Let's go ahead and make it here like Gray is last. Okay, It looks good. And so we have the total down here. Let's do the same thing. Let's go total home expenses and then want to summation. Make sure you're all these here, and then enter. Do the same thing here for summation. Auto son. Highlight everything this box and hit enter. Then we could do the same thing. Here are those home and then scroll all the way down and enter. Finally, we want to give it a border and shading. So let's go here. Let's give it a bottom border orders right here in her bottom double border right here, along with some shading again. Boom! And wow. Look what you got. Your home expenses category. All right. What other expense categories do we have now? What you can do to make this simpler is simply highlight all of this. A copy. Now, when we highlight notice how many cells we have over time all more time Now look in the top left. We've says 15 by four. Let's do the same thing again. Let's go right here. 15 by four horses now 15 by four It's the same amount. Control V. We have the same thing Now Let's just change the categories instead of home expenses. Let's do transportation. But the actual difference. Now we want to change these items here. Let's highlight everything. Right? Click and go to clear contents. Now from here. What are some line items for transportation? How about vehicle payments in auto insurance Fuel? And aside from your car may be a public transportation like us taxi and train. How about repairs? Prepares for your car, Not the bus. Right? Maybe your registration license. And as usual, let's give in an other category for who knows what else. Now look at all this space. Here we have 123456 However many now we don't want these anymore. Instead, let's highlight them on the very left, right click and just click Delete. Fantastic. Now these are different. Let's take these out. Don't need them right now. We want to change this from home expenses to transportation. And there you go. Maybe your vehicle payment, let's say, is 300 months. And for whatever reason, it came out to be a little less, Let's say, and this is unlikely. But let's just say for arguments sake to 90 and you have 10 leftover above your budget, which is a good thing, right? And it propagates down to the bottom. Now what I want you to dio with these categories. Home expenses, transportation and so on. Now that we have two categories here, we saw other categories of expenses. Now this will depend on your personal life. But what would be some other expenses we can put in? Well, those could be health, gifts, subscriptions, daily living, entertainment, savings, obligations and miscellaneous. What you can do for your others is that, say highlight again, Let's do nine by four. Right click and copy. It's due nine by four again highlight nine by four, right click and paste. We have the same thing as we did earlier. Let's put in a Category four health. Let's take all of these out clear contents. Let's rename this health and remove these two items. There you go what would be some light items for health? Well, let's say health insurance and maybe doctor visits and medication. Let's see life insurance or other insurance. Maybe health clubs like the gym and let's do other and we have one extra left over. You can leave. That may be for something else, or you can right click and delete. And there we go again. We have these amounts now, once you have all of your expenses done. For example, home expenses with a total here, transportation with the total here, health in the total here and others we can make a total area. Let's do total expenses. Budget actual difference. Let's give this a slightly different color just to make it stand out because it's the total . Let's go here and let's give it a read really stands out right. Turn the fart white and make it bold again. As usual, let's make it 16 now. What would the total B Well, we're going to put expenses here. Let's just do total again expenses, okay, And the budget. Let's make these have a border. Let's give this our color great again. Let's make these amounts are going to equal the at the summation of the ones up here. So your total budget expenses here's the equation we want to do is pretty simple. You ready? Hit the equal sign. Go up here and it's going to be the total here. Plus the total here, plus the total here and then enter. See how it added up or totals here. Total 500 total 300. But we don't have anything here yet. So 800 through the same thing here equals this Plus this. Plus this and enter Interesting how these work out it to be the same and then equals this Plus this Plus this and it comes out to be washed. You budgeted perfectly great. So now we have an idea of how to put in our expense categories and the different categories of expenses like home transportation, health and additional ones. And with all those categories, you can put a total at the end, which comes out to be the summation of all of those categories. The budget, actual indifference. Now what we have left to do is find out what is the difference. What's the summary between the income and the expenses? And we're gonna do that in just a moment. Get ready for section number three 4. Put Together Your Summary: Okay, so now you have your income areas and your expense areas. All we need to do now pretty much is look at the difference between those two major sections and see, Are you within budget? Are you spending too much money or are you maybe perhaps saving money? So in order to do that, once you have, let's say all of your expense items anyone's that air extra in excess of home expenses, transportation, health, anything else that you've added and you've made your total down here, let's go ahead and put in a summary. Now it's gonna look basically the same. So let's skip down. Maybe 12 lines. As usual, let's put in with all caps. Budget summary. Let's scroll over and give it the same as usual, your budget. An actual and indifference. Now, instead of one of these nice colors, like green, orange and red, let's give it a good old fashioned block color. And, as usual, let's make it white text. Bold in size 16. Fantastic. Now there are only a couple items in here that you actually need under budget summary. Let's go total income and then total expenses and really the difference between those two is going to be your net. Now, under here, we're gonna put in as usual your budget actual and give it a border. Same as usual. Make it simple. We might do a little change in a second. The difference. Let's do the same. Now, hear the difference. The calculation. We're gonna make a little different. It's sort of a one. The type of calculation we did with your income. We're gonna go equals the actual minus the budget. Enter. Just so you will do all of these the same way just so you can recreate it equals the actual minus a budget and equals the actual minus the budget. You are saying one second stable over time equals actual minus. Okay. Now let's give it the grey area, as we've done in the past. A little bit of gray. So what do we put in here? Well, the budget, your total income is going to equal what you have up here at the top. Total income. Real simple, right? Let's go back here. Your total expenses for your budget is going to equal right here. Whom now? The actual do the same thing going to equal your actual total income back up here at the top, enter your actual total expenses are going to equal your actual total expenses Here. Fantastic. Now here's what we need to make a little change. What's the difference here? Well, the difference between total income until expense, we're going to say, equals simply total income minus total expense. Same here equals total income fineness, total expense enter. Fantastic. And this all works out. Let's do a little bit more, Um, I guess designed to make it look a little clearer. Let's highlight here and give it its own unique little bottom border. So go back up the top, come down and give me bottom double border Did, uh and we could if you want, highlight this as well and give it that back around that gray background. And why not even make it large? So you can. It sort of stands out. Let's go instead of 12. Let's make it a nice 18. Wow. Really pops out there for you. Fantastic. So that's all you really need to do in order to set your budget area your budget summary right here. Thes these 123123 categories here. So go ahead and give that a try. And then after you've set all this up, let's come back and go ahead and test everything out, OK? All right. Talk to you very soon. 5. Finalize and Test Your Budget: Now the last thing that I want you dio is clear out all of the data that you've entered in the income and expense areas just cleared out like you have it here. And let's put in some numbers together and make sure that they all add up, which means that you've put in the correct formulas in the correct area. So we want to double check. So let's just put in some arbitrary numbers. Just follow along with me. Although it might not be, your numbers were just checking. So job one, Let's put in 5000 actual 5000 at the very bottom let's put in a number is 2 500 into each of these, well, 500 into the budget. Let's say the actual is 300 so you made a little bit less than you were expecting. About $200 less. Now with your expenses. Let's see your mortgage rent is 1000. We're gonna do the same in both areas. However, it would be a little different down at the very bottom. Whatever you have at the bottom in this category, let's put in five 100 but it turns out to be 300 now. Notice the difference Here. 500. 300. We have brackets here of 200. 503 100. No brackets here. You're doing worse than you were expecting. So we have your under $200 thing you were actually expecting to make compared your budget Here. It's the opposite here. This is your expense category. So you're budgeting 500. You on Lee spent 300 so that's pretty good. You're saving 200. So this is a negative number is a positive number through the same down here, let's say vehicles to 500 again just to check 500 and let's do 100 and then 50. Now you're spending less, So you're actually saving 50 here. You don't have brackets, it's double. Check this one as well. Let's just do 100. 100 looks good. Let's do Let's try 100 again. 150 here. Great. You're saving money. It's not in brackets now. I think I made a little bit of mistake down here in the budget summary. What I want you to do here is what's clear this out. Instead, I want you to come in here and let's do the equation warmer time. It still works out in the end, but it's gonna make a little bit more sense to do equals budget minus actual enters. So here you are expecting to spend 2300 But you actually spent 2000. So you saved 300. Great. And your income, you're expecting to make 5.5000. But you actually made a less than that. So you didn't do as well. That's why it's in the brackets here. And you should get these numbers here. So overall, your net, which means your income minus your expenses you were expecting to net 3200. Not a real number. These air just to go through our testing phase here, actually, overall or your your actual net you made your profit was ah, $100 extra. So this is a positive number. It's not in brackets. So what about you put in some numbers just to check and make sure that they make sense? And then if they do fantastic, you have yourself a working budget and you could start entering these numbers on a monthly basis. And if you dio, you're going to find out where you're spending too much money and what expenses you have control over. And the next thing you know, you're going to have extra money to put either into savings or to paying off debt or investment And what ah, monkey offer back that's gonna be you're gonna be walking down the street with a bigger smile on your face, feeling much better that you took the time to make a budget and control your finances. Congratulations. Okay, that's about it. For making your own personal budget. And if you get the chance, share with someone else, help someone else make their own personal budget. You'll be so much happier that you did so and so will they. Okay, I hope you found some value in this particular lesson and check out any other lessons I might have on Excel money. Bye bye. Take care