Creating a Budget

1. Introduction: Hello, everyone. My name is Timothy Taylor and I'm back with another course. This course is titled creating a budget to take charge of your finances. I brought you two previous courses regarding finances, stop market investing, and the ten money commandments. Within those two courses, I spoke about the importance of having a budget and how to follow your budget. Well, in this course, I'm actually going to show you how to create a budget, the same budget that you're going to follow that's going to help you with your finances. Without any further ado, let's get to the course. 2. What is a Budget: It is very important that before we move forward with this course, we actually define what a budget is. A budget is an estimation of revenue and expenses that's made for a specified future period of time. In this case, it's going to be monthly and yearly. It helps individuals, companies and governments manage their finances by directing resources optimally. I want you to think about that last part, directing resources. That's what your budget does. I'll give you a great example. If you own a warehouse and you have five employees, you open up the warehouse and just let your employees do something without giving them direction. Some employees would do great things, some employees would not do great things, and at the end of the day, you would not know exactly what was done in by who. But if you came in in the morning, open the doors and you told each employee exactly what to do, you can know exactly who did what, who did great, who did not do great. That's the same thing that you do with your budget. A budget allows you to direct the money to do what you're asking to do. This money is going to be for fun. This money is going to be for our mortgage. These funds are going to be for our cell phone bills, and these funds are going to be for our electricity bills. That is what a budget is. Just think about the last part of that definition, directing 3. Why is a Budget Important: The second part of our agenda is why a budget is important. A budget is important for a myriad of reasons, but I'm going to give you four important reasons today. Number one, is financial control. A budget helps you to keep track of your income and expenses, ensuring you don't overspend. See, when you have a budget, you have a direction for every penny that you earn. You know it's going towards this bill, this bill, this bill. You know it's going towards this adventure, this adventure, and this adventure. You know what money is going towards investments, savings, children. You know exactly where every penny is going and it gives you that financial control because you get to see it in real time. Another thing that a budget does for you, it gives you the opportunity to set goals. A budget allows you to set financial goals such as saving for a vacation, buying a home or paying off debt. Because you have a budget, you can actually determine how many months it will take for you to pay off debt. You can determine how many months it will take for you and your spouse or partner to save up for a vacation or for a home. Another thing that a budget does for you is allows you to have emergency preparedness. This is a big one. By budgeting, you can set aside funds for unexpected emergencies and having a safety net for emergencies. Because many people in our country don't have an emergency savings when an emergency does happen, they go into debt. Some people do things that they would never do, but because they're in a financial crunch, they feel that they have to do because they don't have an emergency savings. The last thing that I will share here on why a budget is important is spending awareness. Most people don't know exactly what they're spending their money on. You can sit down with most people and ask them, hey, tell me how much money you spend per month and I don't think that they would have a clue. If you ask them how much money do they earn every month, many may know exactly what they earn. But once you get to that spending side or that saving side, that investing side, I don't think they would have a clue. I will probably take them a few minutes. I think if you gave them an hour, some people still will come back without the answer for you. A budget allows them to understand everything in regards to what they spend per month and per year. These are the reasons why a budget is important. 4. Budget Example: This is something that I think is going to be very helpful. It's just an example of the budget that we're going to create. If you look at this example, you can see expenses. There's actually two sections for expenses. You can see investments. If you don't have investments as of yet, it's still going to be there for when you do have investments. Then there's a spot for income because of course, you have earned income. Within this budget, there are going to be formulas that's created in this budget that all you have to do is plug in numbers and the formula will do all the math for you. If you look over here on the right hand side, you'll see total. That's going to be the total of your investments. You'll also see another section that says total under income. What's your total income? Once you put in these formulas, you never had to do the math again. You just have to plug in numbers. Also on the right hand side, you'll see net net worth and we're going to do net worth for every month. This allows you to see where you're at and where you're going. You can also make future plans by knowing exactly what you're worth. But 5. Net Worth Example: Here's another part of our budget that I think is unique, it's our net worth. I'm showing a net worth example here so that you can see exactly what we're going to be working towards and what we're going to be creating soon. Here you can see exactly what your net worth is at the end of the year. As you're matriculating through the different months, you can actually go to the end of your workbook into one of the worksheets that says net worth and you can see what your net worth is at any given time. I think it is very important if you're competing against someone or competing against yourself, or you want to just determine how many months it's going to take me to reach a certain goal and sometimes it just to look at so that you can stay motivated in whatever you're doing. 6. Gather Information: Hold up. Wait a minute. Before we move forward with this course and the actual creation of a budget, I need you to get some information so that you can create the budget accurately. The first thing that I want you to find out are all the expenses that you have per month. How much is your rent, any other bills that you have, whether it's electricity, your phone bills, any bills that you have, find out how much money you want to put towards having fun. If you're saving for down payment for something, saving for a vacation, you're going to need that also. I'm also going to need you to find out the value of any investment that you have. What is your four oh one k worth? What is your IRA worth? If you have any rental properties, what is that worth? If you're going to put your primary residence as an asset, it's going to be the equity in your primary residence. Find out what it is. But if we're going to use your equity, we also have to use your mortgage as a debt, and it's going to be up to you if you want to put that on there. Now, regards to what we're actually going to use on this example of a budget, we're going to use car loans, then we're going to also use student loans. 7. Track Expenses: That you have all your numbers, you have your expenses, all the bills that you're paying, you have all your investments that you're contributing to, and you have all the income that you receive or that you earn every week, biweekly, monthly, whatever your schedule is in regards to your income. Now that we have all that information, we can actually create the budget. What we're going to do, we're going to use Google Sheet. If you go to your, your website or to the Internet, you're going to type in Google. Once you type in Google, a fourth of July, you see the Google. Here in the right corner, you're going to see these dots. It's the Google Apps. You click on that and you scroll down to She's. This is Google Sheets. You click on it. We're going to be at the home page of Google Sheets. If you're not familiar with Google Sheets, Google Sheets is the Google version of Microsoft Excel. Now, I know what you're saying. I was never good in Excel. Don't worry about it. I'm going to walk you step by step on how to create this budget. The first thing we're going to do is we're going to go to a blank spreadsheet. Click on that. Now in the top left hand corner, it says untitled spreadsheet. The first thing we're going to do is going to type in budget space 2025, Hitnter it's going to save. Now, the cool thing about Google Sheets is that it automatically saves to your Google Drive automatically. Now, let's go back to the worksheet. Well, this is actually a workbook, but we're on a worksheet, and you'll see what I mean in a few minutes in regard to the difference of a workbook and a worksheet. So if you look here, you'll see A, B, C, D, these are your columns. If you look on the left hand side, you'll see the numbers, those are going to be your rows. If I say B two is B two, and that's actually where we're going to start at today. We're going to start by typing in expenses. We're going to use all caps because it's easier to read. Then you're going to click in B three. You're only clicking B three so that you can click off of the cell that you were just in. You're going to click back onto B two and you're going to see this.in the bottom right hand corner. You're going to click on that, hold down the left click. And you're going to drag it all the way over to two and then let it go. All this should still be highlighted and then for some reason, you clicked off and it's not highlighted, just go back to B two in the middle of B two, click it, and then drag all the way across to L two. I'll light it up again. The next thing that we're going to do, we're going to go up here to the top and you're going to look for this symbol, which is the merged cell symbol. Click on that. It's going to bring up a pop up box. You're just going to go to don't show this again for 5 minutes and then hit Okay. Now you see you only have one expenses because now all these cells were merged together, you have one large cell. You're going to go back up to merge cells and right to the right of it, you're going to see horizontal line, you're going to click on that and you're going to go to center. It's going to be basically to center align your word. There it is. The next thing that we're going to do, we're going to ask going to go down to B seven and you're going to do the exact same thing, type in expenses. Going to click off to B eight, go back to B seven. That small.in the bottom right hand corner, you're going to click on it, hold it, and slide over to two. I'm sorry, seven. I apologize. They should all be highlighted again. If you click off for some reason, just go back to B seven in the middle of B seven, click, hold it down and slide over to L two. It's lit up again. Same thing. You go to merge cells. To the right of that, go to center Align. Now you have two spots for your expenses. The reason why we have two spots for your expense is because if you have a household, if you're running a household, you're probably going to have more than I think this is about nine different bills or things that you pay for per month. You probably have more than that. If you don't have more than that, then you only need to make one expenses area or section, I should say. But if you have more like I do, you're going to have two different sections. The next thing that we're going to do, we're going to actually type in your expenses. The way that I like to do it is to go in Alpha order. The reason why I go on Alpha order is because if I'm ever looking at my budget, I'm trying to figure out what I pay for a certain thing, I can easily find it because I know that it's an Alpha order. The first thing is going to be car insurance and you can label them however you want. You may type out the entire word car insurance, and then if you go in between B and C, you can make the cell larger. You can make the cell smaller. And what's going to happen is when you start typing here, it's just going to cut off the word. So if you have daycare next, it's going to cut off your word like this. Me, I just like to put car INS. I know what it is. As long as you can read it and if you're married, then your spouse can read it because obviously if something happens or they need to see it, then it'll be easier for you in the future. All right. Now the next thing is FPL. That's Florida Power and Light Lighting. Florida Power and lighting. Yes. So if you live in a different state or a different part of Florida, then you may have in Central Florida, OUC, whoever your electricity company is. The next one is going to be fun. Make sure that you have a budget for you and your family to have fun. Please make sure if not, you're going to run over this budget because you don't have an allotment for fun, but you're still having fun. So if you're going to the clubs, you're going to movies, you're going to the beach and you spend money to go to the beach, maybe buying snacks and just whatever you do at the beach, jet skiing, whatever you do per month, you should have something allotted for that because now all your money has an allotment. All your money has somewhere to go. The next thing is going to be gas. If you're married, here I made gas H, that's husband, then gas W, that's for wife. Next thing is going to be groceries. Obviously, this is for the combined home gym. In this case, if you don't go to the gym, then obviously, you're not writing this down, but you just write in all your expenses until you get to L. Again, life insurance. That should be husband is going to have life insurance, then wife is going to have life insurance. Now this is something that I would say everyone needs. Everyone needs life insurance. Obviously. If you have a lot of assets, a lot of income, then you may have a discussion obviously with your family regards to, should I have life insurance or not? For the average person, definitely. Mortgage, Netflix, phone. If you're on the same line, great. If you're not, then just separate it. Because this way, you know that you paid for the phone. Might of fact, you can actually put them together honestly. I yours is 50, hers is 50 or yours is 50, his is 50, then you can just put down 100 and then I'll make sure that you pay them on time, pay regular the security security is more like your home security, water bill. There it is. Now I have all my expenses. The next thing that we want to do is an L eight, going to put total. We're going to put total in L nine, we're actually going to give the formula for the total. Here's the formula for the total, equal sine, sum SUM open parentheses. Then you're going to go to B four. Hold it and slide over to L four. You can let it go. Then you're going to put your finger on the control button on your keypad. Hold it down, go to B nine, click it, hold it and drag it over to K nine. So if you look at the formulas equals sum on the parentheses, B felon, L B nine colon Kine. All that means is Be colon means B four through L four. Means and B nine colon which is B nine through K nine, hit Enter. Oz is going to come up zero because you have nothing here. What you want to do next is you're going to type in, you're going to take a few minutes to type in whatever those amounts are. You can see that the formula works instantly. Whatever I type in the formula Google Sheets is going to do all the work for you in that aspect. The next thing that we're going to do is in A four, we're going to type in projected. The reason why we're going to type in projected is if you look at car insurance, my projected amount is $100. That's probably going to stay, especially for the six months. But if you look at FPL, your FPL is going to your electricity is going to vary every month. You're projected. I project that it's going to be about $100, but if I used more light or more energy that month, I may pay 120. What we're going to do here after projected, we're going to type in actual. Actual is going to go in a five after actual, we're going to type in balance. Then we're going to do the same thing in the second section of expenses. In a nine, we're going to type in projected. A ten, we're going to type in actual, A 11, we're going to type in balance. All right. Now we're going to show how this works. Remember, we're going to do a formula. We have a formula in L nine already. What we can do instead of creating the same formula, if you click on nine, there's a.in the bottom right hand corner. We're going to click on that dot, hold it, and we're going to drag it down. We're going to actually drag it down to 11. All that's going to do is it's just going to copy the formula down here. If you double click on this formula, it says, I'm sorry, B five through L five. That's B five through L five and B ten through K ten. It has all your actual here. If I put in it was $100 for that, see how it changes. Now for your balance, we're going to go to B six. So I B six, we're going to actually type in a new formula. You're going to put equal sign, SUM for some open parentheses, and we're going to do B four. It automatically creates one for you. What we can do is actually click behind that col. Well, it won't let you click behind the cola. We're going to actually click B four minus B five, and then enter. What that did is it's going to take our projected amount, we think it should be $100 or we project that's $100, and then our actual is $100. O is going to give us zero. We're going to click off and then click back onto B six. What we're going to do here is that bottom right hand corner, you see that die. We're going to click it, hold it, and we're going to slide it all the way over to L six. As you can see here, it says it's a negative 20 because our actual was more than what we projected it be. We're going to do the same thing in B 11. Equal sum Obarentheses, B nine minus, click on B ten, Enter. Then we're going to drag this one all the way over also to K 11. Now as you start putting in numbers, let's say, water. $100, but I pay 80, going to come out with a $20 balance. That's actually it for expenses. We're going to put some borders on here on the next one and then we'll go from there. 8. Income and Investments: Going to do with our budget is we're going to add an investment. So if we go to B 12, we're going to type in the word investments in caps. Okay. Then with the investments, we're going to click off of that cell. Then we're going to click back on to sell B 12. We're going to hold it down. We're going to slide over to L 12. We're going to go back up to the top and hit merge cells. If it's not already center align, we're going to click here at center align. We're going to go down to sell B 15. We're going to type in income. We're going to put all of our income that we earn. Going to click off to another cell, click back on to sell B 15. In the middle of B 15, hold down your clicker. You're going to slide all the way over to L 15. Go up here, we're going to merge it, and then we're going to make sure that it's center align. All right. Now we're going to put in your different investments. These are just normal investments, and I also believe that this is the order of the investments. Now, we're going to have an Alpha, but I'm going to tell you the order that you should be investing. I suggest that you invest. It's going to be four oh one K, maybe four oh three B, whatever your retirement investment accounts are at your job. Four oh one K on forenses, H for husband, close parentheses. They're going to have a four oh one K on forens W for wife. Then we're going to have a taxable brokerage account, which I'm just going to type in brokerage. After that, going to be High Yield savings account. I'm going to explain all these in a second, but I want us to just type them in first. Then after high yield savings account, it's going to be IRA husband. Continue to do that. IRA husband. Then IRA wife. Then after the IRAs put M maybe a 529 plan, whatever the account that you have for your children if you have children. All right. Now, the order that I suggest that you invest in is four oh one K first. The reason why the four oh one K is first is because there's usually some type of employer match. So your employer may deduct 3% from your check and put it into an investment and then they'll match at 3%. So that's free money that we don't want to leave on the table. After your four oh one K, there's a cap on that also. I think it's 235. There's a cap on the four oh one K. But it has taxable benefits. Then you're going to put money outside of your job into IRA. It's going to be either your traditional or your Roth IRA. You have to make a decision on which one. The IRA is actually capped also. It's going to be 7,000 this year, and if you're above the age of I believe 55, it's I think 8,000, but you have to check on that. After your IRA, there's a CAP. If you still have money leftover that you want to invest, you have to open up a taxable brokerage account, and that's why we have that here. Taxable brokerage account, there aren't many taxable benefits or tax benefits, but it is another place that you can invest your money and there's no CAP. You also have your high yield savings. That's usually where you're going to keep your three to six months emergency savings. The reason why you're going to keep it there instead of at your regular bank is because you get a higher rate of return. You have your high yield savings. Then you have m529 plan. This is going to be an account for your child or your children if you have those. All right. Next thing we're going to do, we're going to go down to income. I'm just going to type in work here, work here, that's going to be my check, my wife's check. Then work and work again because we're paid biweekly. So we have four different slides. If you're single and you only get two checks per month, then you can put work work, and that's it. Then we're also going to put rental income. This could be any side income that you have. You're handyman, if you train, whatever it is, you tutor. A side income, we're also going to include that here. Then in cell 16, we're going to type in total. We're going to go back up to actually, we're going to put total in L 15. No, no, we're going to keep it there. We're going to go up to sell K 13. In K 13, we're going to put total because we have to have the total amount for our investments. Then in L 13, we're going to type in savings rate. We want to know the rate in regards to how we're saving and investing. All right? Now the next thing that we're going to do is we're going to finish up some formulas for these. Total is going to be equal sum. Open parentheses, we're going to go with B 14 through J 14, Enter. The total for our income, we're going to go income, equal sum Op parentheses. We're going to go B 17 through K 17, Enter. Savings rate is going to be a little bit different. We're going to go equal sum Opt parentheses. We're going to go with the total investment. That's going to be K 14 divided by total income, which is going to be L 17. We're going to also change this into parentheses. I'm sorry, percent format as percentage. Once we start actually getting numbers in here, 41k, and let's just say I worked $400. Your savings rate is 100% because all the money that you made you invested into four oh one K, so it's 100%. If I made $200, but I've invested 100, then you'll see the savings rate is at 50. It's hard to see here and that's because we don't have any borders, we don't have any colors on it. Once we actually add that, it's going to look a lot better. We're going to go over here to a 14 and type in actual and you may actually put projected on here. The reason being is you may project that we're going to project that we invest a certain amount and maybe you got some more money. And you invest in something different. You can put projective actual here. I'm just going to leave it here with just actual. The next thing that I want to do is actually add in some borders. The way that we're going to add in the borders is we're going to click and sell B. We're going to click sell B where expenses are, and we're going to just scroll down. We're going to slide down all the way until we get to B 17. B two to B 17. We're going to highlight that. Then we're going to go up here to the borders, and we're going to click on all borders. Now we have this. Makes it a little bit easier to read, but it's still tough. We're going to go to expenses. We're going to click on that. We're going to hold a Control button. We're going to go and click on the other expenses. We're going to click on investment. Then we're going to click on income. We've highlighted these four areas and we're going to make them bold if they're not already bold. We're going to actually change the field color expenses. I want them to be red. The reason I want them to be red, we're going to go with standard red. I want the expenses to be red because to me, expenses are not great things because they're taking money out of the fire. We're going to go back to investments and income and we're going to change that to let's go with the standard green because it's green than not. Anyway, next thing, I'm going to go over here to the side where it says projected actual ballots. I'm going to hit Control, going to get the other three, I'm going to get this actual and I'm going to change that fill color. I'm going to change it to the standard blue. I just don't want it to be red. I don't want it to be green. Now it looks a lot better and it's a lot easier to read. Inside of these cells, any cell with a number, so we're going to go from B four all the way to L six. We're going to hit the Control button on your keypad. We're going to click again and B nine. Then we're going to slide all the way over to 11. Then we're going to go up here to the top and we're going to hit on format as currency. We want all that to look as money. We're going to click off. We're going to go to B 14, slide all the way over to K 14. Hit the control button. We're going to go from B 17 and we're going to slide all the way over to L 17. We're going to go back up here to the top, hit format as currency. Then the savings rate is already formatted as a percentage. So now we're still looking good. We're definitely looking good. We have our expenses, we have our investments, and we have our income. We're almost there. 9. Monthly Net Worth: That we're going to do is if your cells over here, you're M, we're going to go with the M column. We're going to go between the M and the N column, that line here. When you hover over it, it should give you this cursor. What we're going to do, we're going to actually make this M column very slim. The reason is because we want to use this space and we also want to use this space so that you'll be able to see our monthly network. In N two, we're going to type in network. We're going to click off that cell, but then we're going to click back into cell two, slide over to quarter, and we're going to merge these cells. We're going to also make sure that it center align and bold. The next thing that we're going to do is in cell 03. We're going to type in month, start. What was the value of this account at the start of the month? P two, we're going to say month. What was the value at month's end? And in oth quarter, quarter, I'm sorry. We're going to type in change. What was the change during that month? N four, we're going to type in four oh one K H. All we're going to do is type in the different investments that we have here over here in the screen area. 41k Obi parentheses, H for husband, 41k on princes, W for wife. We're just copying exactly how it looks on this page. We're going to type in brokerage. After that, we have high yield savings. Then IRA husband. IRA, wife then PMA. All right. Awesome. We have that, then we're going to have any debts that you have. This is where we put the debt. Let's say we have a car loan, and let's say we have student loans. Now, of course, if you don't have these debts, don't write them in. If you have a different debt, just type that debt in. Then the next line would be total we need to know what the total is. This is going to be so beneficial when you just want to know what did I look like in January? What did I look like in February? It may be two, three years down the road and you say, this is how much I'm worth now. Let me just go back a few years, see what I was worth in January of 2025. I do it sometimes and I love it because I'm doing better than I was before. If we put in some examples here, let's say month start, let's say your four oh one K for husband was 10,000, same thing for wife. Let's just say that your brokerage account was 10,000. High yield savings, 100. Again, these are all fake. These are just numbers. Now you have your numbers because you looked up the value of all this. You're going to go in and you're going to find your numbers. All right. Now we get down to car loan. Let's just make it up something. Let's just say your car loan was $20,000 at the beginning of the month. We're going to put negative 20,000, student loan, let's just say it was 25,000. We're going to put negative 25,000. Then we're going to put at month's end, we're going to put $2,000 for here, $2,000 for here. Our brokerage, let's just say 15,000. I'll give you a great example. For that brokerage account, if you're in the market or even at four oh one K, anything that's in the market, if you began in March and then look at the end of March, you probably lost money because the market was horrible. If you look at June the beginning of June, compared to the end of June, the market did great. Obviously, you would actually increased the amounts. Now, high yield savings. I'm just making up numbers again. Let's go to our car loan. If we look at our car loan, if now it's negative 17,000 because we've been paying on it this month, and then even our student loan, if it's negative, let's just say 22,000, then obviously it's a good thing for us. If we go up here to our change, now we have to type in formulas. In cell fo quarter, we're going to type in equal sum. We're going to take the month end, which is P four. We're going to subtract months start, which is 04 and hit Enter. Now it's giving me a suggested autofill. The suggested autofill looks Looks correct. I was actually supposed to press that button, but I did. In order to just copy all these formulas, you go to the cell, which is our quarter in the bottom right hand corner. You're going to pull it all the way down. It's showing green already because I did conditional formatting. I'm actually going to take it off because I want to be able to show you the conditional formatting. I want to be able to show you the conditional formatting. This is one now it's working on previously. Now it's all blank. I didn't do the total. Let's do equal sum 13. Equal sum up in parentheses, they were going to get all these self together, hit Enter. So it's saying negative 29,000 because these numbers are so small, obviously. Just to make, I don't have to change it. We're going to take this formula, bottom right hand corner, we're going to slide it over to the next one to P, what's this P 13? Okay. So you went from having negative $29,000 in network to negative $13,000 in network. And this negative numbers really bothering me right now. I'm going to make two changes. I'm going to start with the four oh one K monthly start at 10,000 for the husband. Then I'm going to finish it off at 15,000 for the husband. I'm going to also do the wife's the same amount, 10,000, finish off with 15,000. Still let's put the brokerage, making the numbers 30,000. Then we're going to finish the brokerage off at 35,000. The reason being, I just hate to see this negative number at the bottom from my network for anyone. You see how the numbers change also. Now, over here for conditional formatting, what we're going to do is we're going to click on SL oquter. We're going to slide all the way down to sell We're going to slide down to sell our qu ten. Let go. Then we're going to hit the Control button. And we're going to go to sell qu 13. Then we're going to go over here to format. We're going to throw down a conditional formatting. What this is going to do is actually going to change the color of the cell based on the conditional formatting, based on the conditions. Here on the right hand side, the cells are already selected. We're going to say the format rules, format cells if greater than zero, and we're going to make that green. Why are we going to make it green because green is money. Green makes feel good. Then we're going to hit done. We're going to add another rule for those same cells, format cells if less than zero. What that says is if my four oh one K went 10000-15 thousand, it's a $5,000 positive change for me, green, good, getting money. If my four oh one K went from 10,000 I'm sorry, 5,000, it's a negative change. I don't like that. I'm going to make those colors red. So anything that's in a negative number is going to be red. Why, when I first pull up my network on my budget, I see red, I see back. Just like over here, expenses, they're red. They're standard red. I really like that. But the numbers I want them to show very, very bright red. We're going to hit done here. Now you may be saying, well, what about those two cells here? These two cells are a little bit different. They're a little different. We're going to do the conditional formatting for these cells, but they're a little different. This is how we're going to do the cells. We're going to select these two cells. We're going to click another rule. Format cells if greater than zero, greater than zero. Because it's a change for the good, we're actually going to keep that. We're going to actually keep those green. All right. We're actually going to keep those green and I'm going to tell you why there's a difference here. I'm going to tell you why there's a difference here in the next slide actually. We're actually going to keep those green. We're going to keep those with the basic. We can actually hit counsel here. The reason why I want to hit Council, I want to actually just change these over to I'm going to change this range. This is good because you get to see this working in real time. Od quarter all the way through to ir quar 13, done. And then we're going to change this one, our quarter, all the way to thir quar 13, then we're going to hit done. Because no matter what, if I would change, let's say I went from negative $25,000 on my student loan, I did not make a payment and interest accrued on it, let's just say it's 25 negative 25,500, it would have showed a negative change of $500. We don't like that obviously. We're actually going to be done with this one. We're actually going to be done with this, I'm going to take this conditional formatting off. I can see everything on one page. If for some reason, I couldn't see, let's say, it was stretched out. I couldn't see and I had to use a scroll, I would just make one of the cells smaller I can see everything on one page. Hopefully that makes sense. If not, just leave me a comment, not leave me a comment, send me a message, and I'll help you out with that. 10. Yearly Net Worth: Now we're going to add in our other months and then we're going to add in our yearly network. This was going to be some work, but I'm going to walk you through every step. The first thing that we want to do is actually ask some borders over here. We're going to add some borders over here because right now it's pretty and it's not aesthetically pleasing. So we want it to be aesthetically pleasing because the better it looks for you and it's for you, the easier that it can be to read. Right here, we're going to just add some borders, all borders here. Actually, I want to get a little bit of space in here. So L, I need to open up just a little bit. I just like that little bit of space, a little bit of separation here. Then for the net worth cell right here, which is N two through quarter that we merged earlier I'm going to put a field color in there and the field color I'm going to use just this ugly till. I don't like that color actually. I'm not going to use that. I'm going to use I'm just going to use a standard green. All right. And then here for the different investments and the debt that we have, I'm going to make that all the same blue that the project and the balances are. I'm going to use that blue. And then, month end and change, I'm going to use that blue again. That's how mine look. Now you may say, well, that's ugly. That's a lot of colors, possibly, but it should be what you like. Because you're going to be the one that's looking at it. Now, at the bottom of this Form. It's really a worksheet. At the bottom, it says Jan down here. You can hit rename because it probably says sheet for you. Hit rename it Jan for January. Then what we're going to do after that is we're going to right click, we're going to click off. We're going to right click and we're going to hit Duplicate. We're going to hit Duplicate because we need February, we need March, we need April. We're going to hit Duplicate a few times or duplicate a few times. I mean 11 times so that you can get all the different months in there. Okay. Okay. All right. Now, at the bottom, these are all called worksheets. This entire thing where it says budget 25, that's a workbook. Within the workbook, there are different worksheets. Down here, different worksheets, just some information. Now, we're going to rename this February or fab. We're going to go to the next one. The next worksheet, right click, rename March. Next worksheet, right click, rename April or APR. Next one's going to be made and we're just going to go all the way down the line. Upfront, it's a lot of work. It's a good amount of work, I should say, but you only have to do this one time. After that, it's plug and play the rest of the way. All right. Awesome. Once you do that, over there close to Jan, there's a plus sign. If you hover over it, it says add sheet. I want to add one more worksheet. It's going to come up more than likely it's going to come up sheet you rename it to Net Worth. This is an awesome tool because any year that you would like, you can always go back to that year and you can figure out what was the amount of money that I brought in, actual money that hit my account because we're going to type in net income here. What amount of investments that I invest or what amount of funds that I invest that year. We can also see where you started in January, all the way over to December 31. I think it's a great tool. It makes it a lot easier for you to track your expenses and track your net worth on a yearly basis. What we're going to do in net worth is we're going to go to sell B. Actually, we're going to go to sell A two. We're going to type in YR, that's for year 2025, then in B two, we're going to type in January. And B two, we're going to type in Chan first or Jam one and C two, we're going to type in December 31 or DEC 31. Next we're going to type in total change. Then after that, we're going to type in percentage. Now, if you wonder what I keep looking over here to my left, I have the actual screen of the actual things that we should be typing in just in case I forget because this is a lot of information. And I just want to make sure I'm giving you all the correct information. Now, under A, under year 2025, we can actually go to one of our months and what we do over here is we're going to go to any month, January, February, all the months are the same anyway. We're going to go and get all of our investments and our two debts. We're going to go to N four. We're going to slide all the way down to N 13. We're going to copy that. And then we're going to go back to our net worth sheet and we're going to paste it. Control V is paste. We have all of our investments here in our two desks, as of right now, this is how we should look. The next thing that we're going to do is we're just going to hurry and put some borders on here because it's ugly and it's hard to read. Just going to put some borders around it. I'm going to put all borders here. We're going to actually bold everything at the top, and we're going to also center align everything because again, it makes it easier to read. I'm going to also put some field colors here. Right now, I'm going to make that blue. All right. Awesome. Then right here, if you have student loans and it's leaking out, it's just because the cell is too small, so you can go in between A and B. If you hover over that line, you're going to get this cursor, you can double click. It'll make the cell just big enough that it fits in the word. For January 1, if I go to January 1, I can see the amount that I started with and I'm going to scroll down. I'm going to click all these numbers or I'm going to copy all these numbers. I'm going to go back to the net worth sheet and I'm going to paste that amount here. Well, I got to do Control B. Okay? Because that's what the values were in January 1 or on January 1. Now, if you're beginning in August, you're beginning in September, then you can just type in September 1 for your net worth because that's when you begin and then next year, you'll obviously start with January 1, and then the end of the month or the end of the year is always going to be December 31, obviously. Then for D three, we're going to type in total change, it's going to be a formula. It's going to be equal sum on the parentheses. We're going to go from December 31, which is C three minus B three. We can take that, we can copy it all the way down to D 12. Then percentage. What is the rate? What is the rate that I'm saving it or increasing my funds at? What is the rate that I'm increasing my funds? We're going to go equal sum on bit parentheses and we're going to actually take the change right here, which is D three. We're going to divide it by the initial amount. That's how you get the percentage. What's the percentage change? That's how you get the percentage change. Equal sum, we're going to take the total change, which is D three, and you're going to divide it by the initial amount, which is B three, as of right now, I have a negative one. What I'm going to do is I'm going to slide that E three all the way down to E 12, and I'm going to put it in a percentage format as percentage. We have format as percentage. I'm sorry, so we don't have. I didn't actually copy the formula. Click on E three, take this.in the bottom corner and slide all the way down. Everything is at negative 100% because there's nothing in December 31. But if there was something in December 31, if I went from 100 or $10,000 in my four oh one K, to $15,000 in my four oh one k, there's a percentage change of 50%. I hope that makes sense. If not, you can always message me. If I went from my Broth account was $30,000 and now it's $32,000, then you can see I increased by 6.67%, right? The next thing that we want to add in is net income. Over here, we're going to start with G. Let's go with G two. We're going to type in net income. And we're going to actually merge cells G two and H two together. Let's just merge those and we're going to center a line. We're going to make that bold now. We're going to also do a field color. I'm going to do field color, just the regular blue, the standard blue, and you can do whatever field color you fill. G three, we're going to type in work. In G four, we're going to type in rental income or whatever your side income is. You're going to type that in if you have any. Then in G five, we're going to type in total. Next thing we're going to do in all this, just that area, we're going to add borders, make it easier for you to read. We're going to also go in between G and H because rental income wasn't showing completely. I'm going to also make these bold. What we're going to do with? We're also add this field color. What I'm going to do here is we're going to create a formula that brings in all the net income from your work here. We're going to bring in a formula that brings in all your rental income here and then obsole total will be here. Before we do that, we're going to set up one last section. This section is going to start in G seven and we're going to type in amount invested. I think it's very important to know exactly what are you adding to your investment every year? It may not be very simple to read because if you go to your brokerage account and you look at where you started, I started at 10,000, now I finished that, let's just say 20,000. It doesn't mean I added $10,000. That is your additions or your contributions and interest that is earned over time. I want to know exactly what I input it because then I can actually judge it or determine if I need to increase it or if I could decrease it or keep it the same. Now, all your investments are over here in your debts. You're going to take that bar or those cells, going to copy it and I'm going to put it over here and then I'm going to paste it here, going to put some borders around these areas again to make it easier to read. Going to bold. I'm actually going to merge these two cells for investment amount invested, going to merge those two cells. Going to center align, align it, and then I'm going to bold. Going to make this field color blue, going to keep it going with the same colors. Now, over here, you can see amount invested there are two debts here. Obviously, I don't need the debts because I'm not investing there. I can't invest in that. What I'm going to do with car loan, I'm going to click on that cell that says Car loan and I'm going to actually put the total there. I'm going to type total here where it says student loans, I'm going to put savings rate. We want to know what the savings rate is. Then we still have total at the bottom. I'm actually going to go to my row over here. Remember the numbers on the left hand side of rolls at the top where the letters are those are columns. I'm going to go to Row 17. Going to click on the actual number 17, and you're going to see this entire row gets highlighted. I'm going to right click and I'm going to delete that entire row. Don't need it. This is how you should look. This is how we should look. Hopefully everybody's on the same page. If not, you just go back, rewind, come back. Now let's go with I'm going to put in some numbers here. Actually, I'm not going to put in numbers here. I apologize. We're actually going to put in some formulas. The first formula we're going to add is a savings rate equal some on parentheses, we're going to do the total amount invested, which is sell H 15 divided by my total income, which is sell H five enter. I'm going to click back on this cell for savings rate, which is age 16 and I'm going to go up to format as a percent because I want it to be percent. Now we're going to do some typing so if you were not good with Google Sheets or good with Microsoft Excel, you could always go back and if you have to do anything in Microsoft Excel or Google Sheets in the future, you know how to do this. This we're going to do. For net income, anything that I worked any income that I got from working or any earned income from work, I'm going to actually allow Google Sheets to add them up for me throughout the entire year. Here's what I mean. I'm going to type I'm going to start a formula. We're going to start with equal sum Op parentheses. I'm going to go to January. The January worksheet, you should see this right here it says, net worth. You see this, don't do anything with this. But what you're going to do is incel B 17, you're going to click on that, you're going to slide over anything that has work right here, those four spots or cells, then you're going to hit. You're going to go to February, you're going to get those same four cells, you're going to go to March. Same four cells, April, same four cells, May, same four cells, June, same four cells, July, same four cells, August, same four cells, September, same four cells, October, same four cells, comma November, same for sales, December, same for sales, Enter. It says, I have a net income from work for the entire year $2,400 and that's because if we go back to our worksheets, I have $200 here. For every part of every month. Let's just say in March, I'm going to add 200 for the husband. That's just once. If I go back to Net Worth, it'll show 2,600. It's going to do the adding for you. You never have to touch this again. All you have to do is just input what you're making every month. You're going to do the same exact thing for rental income equal sum. On parentheses, go back to January, get your rental income or your side income. If you have more, you would select these boxes. And then you're going to click on, go to February, select all these boxes because all these spaces are for side hustles. If you get a bonus from work, if you want to separate that and put bonus here, then that's cool also or you just put work income. Go over here to April, same thing. May, same thing, you're going to go all the way through to December and then you hit Enter. So pause the video, get all your rental income for the year and then come back to the video. Now, if you're back to the video, I mean you have everything for rental income or for your side business, side hustle. In here for H five, total, you're going to put equal sum on the parentheses and it's going to be these two cells. So H three through H four or h3h4, same thing. It's going to give you a total here. Now you see that savings rate is at zero. It was at error initially. Now it's at zero or why? Because we have one of the numbers here. Then here for amount invested, you're going to do the exact same thing, equal sum open parentheses, go to January. Amount invested for husband. You're going to select sell what is that? Sell B 14, Go to February, sell B 14, March, sell B 14, April, sell B 14, May, sell B 14, June, B 14, July, B 14, so on and so forth. Just go all the way through for the year. All right? What you're going to do next is you're going to do the same thing for 41k for your wife, 41k the brokerage, the high yield savings, IRA, IRA, UMA then you're going to have a total here and the formula for the total is equal sum on the parentheses, and I is going to be all these cells combined. Hit Enter. Now, let's actually put some numbers here because you know, only reason I want to be able to show you almost like an accurate not accurate but the best example of the worksheet that I can I'm going to throw some numbers in there. Then even for your expenses, you should have already filled in these numbers, all these should have numbers on them because these are your projected amounts. I'm going to just throw in some numbers. These are all examples, obviously, and then yours should be real numbers. If you look at the monthly numbers here, you can see the savings rate is at 50%. Obviously, that's your savings rate. That's awesome. That's awesome. Let's go back to net worth. Right now we have the work income, obviously it is increased and the rental income is there. 41 K's just because I didn't have much I didn't do the formulas here. Let's do this. Let me throw in some formulas for that. Remember, it's the 41k, which one are we on 41k Wi here. February, March, April. May, June, go all the way through. You should have numbers here. If your numbers look like this, giving out these just examples. Obviously. If you worked it shows your savings rate at 261% only because your total amount invested is 16,000 and you work 6,400. Over here, remember, we're not actually typing in numbers, we're typing in formulas and they'll grab it from here. Next thing that you want to do is make sure that all these numbers here are in currency format. Same thing for this. This is already in currency format. Great. If we had a real number here, let's just say because this interest savings rate is ridiculous, obviously. Let's just say this is your savings rate, 32%, which is still good. All right. Now, what do we want to do over here? Let's just say that this went up 15 to 15,000. High yield savings went 1000-2 thousand. IRA went 1000-2 thousand. Up my went 1000-2 thousand. Here is interesting. Your car loan at beginning of the year, it was $20,000. Now it's 15,000. Your student loan, you have not been paying on your student loan and interest has been accumulating. It is now 25,500. In the next slide, we're going to continue with this and I'm going to show you how to put in conditional formatting for this. 11. Conditional Formatting and Debt: So we're going to finish this up. In here, it says C 12. We need the actual formula for adding all these cells together. We actually going to have to type in formula because the formulas here. The sum is here. We're going to click on B 12, take that right dot, slide it over. Boom, it gives us the formula right here, copies that formula to that cell. Now, all these numbers are just numbers now. It doesn't mean anything until we make them currency. All right. Now it's not just numbers, it's money. But there was a mistake that we made previously, and the mistake is in cell C ten and C 11. Hopefully you caught it already, probably was already screaming at your screen, saying, Hey, yeah, that's not right. The car loan was negative $20,000 because it's a loan. So we're going to put it as negative $20,000 on our documentation. Now it's 15,000. It's still going to be a negative 15,000. This is our net worth. Any loans or any debt is a negative to our net worth. The $25,000 in student loans, we didn't pay on it at all. I accrued some interest. Now it's $25,500. It's a negative $25,500. At the bottom, you can see net worth went 9000-29500, which obviously would obviously be a good thing because it was an increase of $20,000. All right? Now, what do we want to do next? Over here? Our percentage change, we're going to do some conditional formatting here because when I first look at my documentation, I want things to pop out at me because I can see it real easily and I can know that's a positive, that's a negative. Instantly with conditional formatting, instantly you can see what's good and what's bad and those are the things that I want to focus on quickly. What I'm going to do is I'm going to highlight this entire area. D three down to D 12. Going to go to format. I'm going to go to conditional formatting and you know what we do over here. Format cells if greater than zero, we're going to make them green, pop out at me. Boom, green means money, doing a good thing. Add another rule. If less than zero, we're going to make it red means what happened. What happened here? We already know what happened with our student loan. Now for percentage, percentages will be a little bit different. Percentage will be a little bit different, and I'm going to show you why. Let's actually take all of our assets, so we're going to go from cell E three all the way down to E nine, and then also going to hit control and then E 12. All of our assets, we're going to take those, go to conditional format. We're going to do the exact same thing that we did before, greater than zero. Make them green, make them pop out at me. Good thing. Done. Add another rule. Less than zero. Make the pop out at me. No good. Obviously, nothing's going to change here, everything is a plus. Everything went up. Awesome. Now, for our debts, our debt going to be a little bit different. We're going to highlight these two cells. We're going to go to format and we're going to go to conditional formatting. All right. So I greater than zero, if greater than zero. This is how you do conditional formatting if you're not sure or to be sure. We go over here and look at our numbers. Our car loan went from negative $20,000 to negative $15,000, $5,000 difference, but our percentage is in a negative, initially, it's in a negative, must be a bad thing. No, our debt is 25% smaller. Our debt is 25% smaller. What do we want to show there? Is that a good thing or a bad thing? Of course, that's a good thing, Tim. That's a good thing. Oops, negative 25 greater than zero, sorry. It's 25% smaller, less than zero is going to be a good thing. Then we're going to add another rule. If greater than zero, which one is? This one, our student loan went from negative 25,000 to negative $25,500, a difference of $500. I our debt increased by 2%, which is a bad thing. We're going to make that red. Pope at me, boom. All right. Immediately, once I pop onto this page, I see two red, that's not good, but I see a lot of green. So obviously, that's a good thing. Okay? Any questions on that, you can always message me. This is how your net annual net worth pay should look. Then if we go over here to our budget, our monthly budget, this is how it should look. One last thing. January, if the month ends, not going to show bad. All right. If our month ends like this, going to copy it? How does February begin the same way that January ended? Remember that at the end of each month, you're going to take the month end and you're going to put it to the next month. You end January. That's how you begin February. However you end February, that's how you begin March. There should be no difference there at all. There should be no difference there. Awesome, now you have a budget. Now you have very interactive budget and now you can share it with your friends and now you can see exactly where you're at in your financial situation. 12. Conclusion: Congratulations and thank you for completing the course. You have successfully created a budget for yourself and because you created it, you understand exactly how this budget works. Now, there are some advantages for using this budget. Number one, it's very interactive. Because we put in the legwork initially, all you have to do now is plug and play. Another advantage is that you can see your monthly net worth. You can gauge where your finances are monthly. Another advantage is that you can see your yearly net worth and you can gauge your finances annually. If you know of anyone who will benefit from this course, please share. Also leave review. I read reviews and I want to make sure that I'm improving my courses with every course that I create. Again, thank you and congratulations.