Creating a Family Budget: Control Your Finances!

1. Introduction: If you're struggling to keep track of your finances, then you're not alone. I was there too. But one tool that really helps is to create a budget. Especially if you're a family. Creating a family budget will allow you to harness your finances and to keep control over your spending. In this class, I'll teach you how to create a simple and effective family budget. That'll help you keep track of everything that you have going out, coming in and how much you have to save leftover. We'll look at tracking your outgoings. Tracking your essentials, and other expenditure will look at calculating percentage income. How much each family member needs to contribute to the overall budget will also look at creating pivot tables, which allow us to categorize and see what is costing us the most or the least each month. Finally, I'll show you how to make sure that you're staying on track and how to set up a table which will allow you to make sure you're staying on track with your budget. So I hope you'll join me for this course and let's get started. 2. Adding Your Income: Hi everyone and welcome to part one of creating a family budget. Now, the first thing we've done is we've opened our Excel spreadsheet. This could also be a Google Sheets document, whatever you're most comfortable using. Let's begin by creating our income streams. So we're going to say that there are two main adults in the family. So we'll start by writing income and then the names of the adults. So let's make up some names. So let's say we have David and we have David's partner, Joan. Now, David, he earns 3,500. Joan earns 2 thousand. Now we can change these fields into currency by going up to this icon here and selecting the currency we're working in. So let's work in pounds. The next thing we can do is we can look at the percentage of income. Let's write down our total. Then we can find out what our total income is. We can do this by a simple addition. So we write equals sum, an open bracket, and then we simply click on whichever one we want first plus sign. And then we can close our brackets and click Enter. Now, this is very useful because if we alter our income. So now let's say that unfortunately, David now also only earned 2000s. We can see that our total is automatically an altered. Let's give them a pay rise. Now, we can also look at the percentage that each of them has. And this is useful for calculating how much each should contribute, which we'll come on to at a later time. So how can we do this? Well, the first thing we need to do is format the cell as a percentage. Click this up here, which is the percentage sign. Now let's formatted that cell as a percentage. We do equals. We click on our income. And then we hit the divide sign, which is a slash, and we click on our total. And when we press Enter, it automatically calculates our percentage for us. So David earns 56% of the total income. Let's do that again. So for Joan, we click on the percentage sign. Then we click Equals select Jones income slash for divide by the total and press Enter. So we can see there that Jones owns 44%. Now let's give John a pay rise. Now, we can see automatically our percentages and our total have changed. So hopefully this has been useful and I'll see you in the next one. 3. Calculating Percentage Contributions: Everyone, welcome back. In this, we're going to come back to our income stream. Now, let's start by moving this over here. So we have a little bit more room. Since we now have our total predicted outgoings. We can also now predict the percentage that each person needs to contribute. Now, we know that David has 45 per cent of the total income, and Joan has 55 per cent of the total income. So let's label that income percentage. What we can calculate now is what percentage do they need to put in in order to reach the total outgoings? So a very simple way that we can do this is by putting in our column here input. Then we have to multiply our total by our percentage. So we put equals, we take our percentage, a star for multiply and then put our total. We can see it's automatically placed our currency into that box, which is very useful. Now we can either do that calculation again or we can simply drag down from here to here to duplicate. But let's run through that one more time. Equals then our percentage multiplied by the total. So from this, we can see, but Joan should contribute £812.13 and David's should contribute £677.27 in order to reach the total expenditure of 1490. And we can double-check that our workings are correct here by simply adding together our inputs. And we can see that the two numbers are identical, which means that our calculations have worked. So let's have a look at what we've got. We know how much we're spending each month, roughly. We know how much we're bringing in each month. Now we know exactly how much each person needs to put in in order for the budget to be balanced. So let's just move this down a little bit to give us some more room. And let's say we want to add some extra outgoings. Let's say we want to have an eating out budget. Well, let's say we're allowing ourselves to a £100 a month to eat out what we've added it to our list. And you'll notice it's automatically updated both our total and the amount each of us has to put in. And that's gonna be very useful. Because once you've set this up, you can add every single additional piece of information, outgoings to your budget. 4. Calculating Surplus Income: So I've now colored in and formatted our tables very simply. Just to make everything a little more easy to read. Quickly go over how I did that. Highlighting the area. Then up here we can add a border. And then simply by clicking on the cells we want. With this fill tool, we can choose the color. We want our head has to be so I can change that one to blue. So that's all I've done here, and it just makes it a little easier to read. Now, let's say we want to find out how much money we have leftover each month after we've subtracted our outgoings, for which we have here. Well, we can do that per person. And all I've done here is I've added a little column here which I've titled leftover. And a little total box here. So we know how much we have joined because this is, after all, a family plan. Now, this is a very simple calculation. We simply need to subtract our input and our total income. So let's have a look. So equals then how much money we have coming in each month. Subtract our input, and simply press enter. And that is how much money we have leftover each month. Let's do that again. So equals our total income. Subtracting the amount we've put in each month. Now we can find out how much the family has, like equals sum, selecting both and clicking Enter. So that we can see that in this scenario, a family's total income of 5,500 after these predicted its expenses leaves 3,510 in disposable income. And I'm very aware that these are rather large numbers and most people's, including my own, won't be anywhere near this high. But this is all simply for illustration purposes. 5. Calculating Outgoings: Hi and welcome back. So we've set up our income. And the next thing we can do is look at our outgoings. Now we're going to divide these into two different types. We're going to have our consistent outgoings that we can have predictions for. And we're going to have our actual outgoings where we keep track of everything that we've spending. So let's start and have a look at our regular outgoings. Now, we can create another column over here. Let's call this outgoings. Now, let's go down and see all the different things we have coming out. So let's start with rent. Or it could be a mortgage payment. Mortgage here. What else do we have? We could have a car. I'm sure. You can have card repayment. We can have our food budget. What else? Let's say we have pet insurance and a vet plan. We might also have insurance. Okay. So those are some common outgoings that we would know each month. Let's put a column, it says amount. Now, let's format. Now we know these are all going to be in currency. So let's click and drag down for the entire of our table and then come up here and once again convert. Now let's do a little total column here. And also convert that to currency. Now let's say our rent is 500 per month. A mortgage, let's say we paying 200 a month because we're on a part ownership scheme, perhaps. Our car insurance might be a £150 per month. We might be repaying £200 a month for our car. We might have a £400 a month food bill. Our pet insurance might only be £15 plan, let's say that's £20. And our home insurance, that might be £5. Now let's add all of that up. So we do equals sum open brackets. And then we can simply click on the first and drag all the way down and press Enter. This gives us our total for the month. 6. Tracking Outgoings: The Basics: Hi everyone, welcome back. In this video, we're going to discuss how we keep track of our outgoings. Now you'll notice I've moved our income field over a little bit to leave some room. And once we have our predicted outgoings, we can also now keep track of our actual outgoings so that if we need in the future, we can adjust our budget accordingly. So we're going to start by creating a new table. Now the headings for this table are going to be item category, the outgoing. And we're going to look at the item is going to be the actual thing that you bought. The category where we're going to have a number of different categories, such as housing, cars, pets, utilities, petrol, our food, eating out. Any credit repayments. And perhaps or other bills such as Internet access or phones. Out is going to be the quantity in currency. How much it cost. And importance is going to be a tool for helping you to budget. So we might be looking at essentials. We might be looking at a regretted purchase, or simply something that it's lovely to have, something you don't regret that you could afford, but that isn't essential. Let's start with some examples. So we could just put a shopping trip. It's category falls under food. Let's say we spent 100 on that shopping trip because it's food. We gotta call that essentials. Now, let's format some of these rows so that they show up as currency. I'll jump back to you once I've filled in a few more. So as you can see here, I've filled in a few examples. Might place you somewhere in the middle of the month. So we can see that we've spent a £100 on some shopping. We have categorized it as food, and we've deemed essential. Our rent, of course, came out and we can see that they match. And it's also essential. Had an Internet bill, a credit card bill, a charity donation. Now, we've factored this under miscellaneous because it doesn't fit any sort of broad category that we could use. And we've said it's sort of a nice thing to have had or done. We don't regret spending money on it. Let's come down to the bottom. Let's say we went out and we've eaten in a restaurant called the Savoy. We've categorized it as eating out, but we spent £400. We didn't really like it. Probably more than we should have spent. So we've categorize this as a regret. So when we look back at our bill and we're reflecting on what we've spent. We can say, let's not do that again, because we've noted it down here. So what can we do with this information? Well, we can use it to understand where are the majority of our outgoings are coming from. And we can do this through using pivot tables. And that's what we're going to look at in the next video. 7. Tracking Outgoings with Pivot Tables: Hi everyone, welcome back. In this, we're going to look at getting a grasp on our outgoings using pivot tables. Now, pivot tables will allow us to sort via category which you've set up here and figure out which category is costing us the most money, the least money, and where we can save. So let's click somewhere where we want our table to appear. I've chosen in this cell. Then we go over to insert and click on Pivot Table. Now we have to select the data that our table is going to draw upon. And we want to look at our different categories, the amount that's going out. And also we have our item and are important. All we need is our category and our outgoings here. So we can select across and down. And we want to select slightly further than our table so that we can add future amounts. We've done that. We click, Okay. Now we'll see our pivot table has appeared, but it's currently blank. And in this section we have our different fields. Now the first thing we wanna do is select a category. And we want to ensure that category falls under the rows section. We then click out outgoings and we want to make sure that our outgoings sit in our values box. Now, we can see that our table has been created. So we can close this pivot table field and we can begin formatting. So the first thing I wanna do is rename. So let's rename this categories. Then we have the sum of which is the sum of outgoing from this table here. Now, we want these to be in pounds, so we can select all these fields here and convert them to pounds using our accounting tool. Now, how can we gain some useful information? Well, we can see how much each category has cost us. So far. Our car has cost us 376. We spent 56 in credit. So how else can we look at this? Well, we can begin to organize by clicking here. We can sort by different things. Now, I want to see which is costing us the most money. So I'm going to sort by our outgoings. And then let's select a Sunday. That will give us our cheapest to our most expensive. We sort by descending. That will give us our most expensive. So we can see here that we're spending £730 on housing. We've spent 400 on eating out. We have spent 376 on our car and a 100 on food, et cetera, et cetera, for a grand total of 1692. What we can also do with our table is update. Our outgoing is here and see real-time changes in this table. So let's say for example, we've added an additional £40 in petrol. When we press enter, we can go back over to our table here. Right-click, click refresh, and we'll see Our car totals are updated. So let's say another bill has gone out. Let's say would've been shopping again. This time we went for clothes. And let's say we spent £30. If we go over here, we can refresh and we'll see the clothes has been added to our list. And so you can just continue updating your outgoings. And at the end of the month, you'll be able to see which type of bill, which type of outgoing cost you the most and costume the least. 8. Staying on Track: Welcome back. Now, we want to make sure that we're staying on track. And a good way of doing that is making sure that we don't exceed our total. So we know that we have £5,500 total income. And we know that our expenditure predicted sits at 1990. What we need to do is ensure that we don't go over either our budget for the month or the total amount of money which we have. So let's have a look and making another table to make sure that we're keeping track. And we're going to start down here. So let's say we have budget total. Budget total is here. So rather than typing in, let's make sure that it changes depending on our month. So we can use this as a template in the future. So we click equals, we click on that, and then we press Enter. Now, if our budget changes, our budget total will change as well. Let's type in our income total. Now. Click Equals, and over here we have our total income. And again, if that changes, it will change here. The next thing we wanna do is look at our total expenditure. Expenditure total is the amount that we've spent so far. So again, we press equals and we're gonna go over to our pivot table and our grand total here. That is the amount that we have spent. So you can press Enter and we're going to need to format that in pounds so that we go. Now, all these numbers will automatically update as we increase our spending or decrease our budget or increase anything else. Now let's make sure we're staying on track. So we have our sums here. Can type in tracking, tracking total. Then we can equals, and then we can take our budget amount and subtract the amount that we have spent and press Enter. Now that gives us how much we have left to spend. Now let's say for example, we went out and we went shopping. We brought a whole load of miscellaneous items and we spent a total of £500, which I think we can say we regret. We then go to our table, we refresh it. We see all total here. Shoot right up. In here. We can see where there is a bracket around it. That means we've gone over budget. The bracket essentially means negative. Now let's rename tracking total because perhaps that's not the most appropriate title. So let's type in budget remaining. That will tell us how much of our budget is left. Now let's type in total remaining. And let's do a calculation here. Now here we want to know, given the amount we have coming in each month, are we spending more than we earn? So here we have our income total subtracting expenditure. Whilst we on these numbers have gone over budget by £272. As of yet, we haven't spent all the money that we have. And so you can make your own decisions. I'm obviously about how you spend your money. This will just help you keep track. So we might have a savings goal. And in order to save this amount of money per month, we need to make sure we aren't spending more than our total budget. And that will give you the amount you need to put into savings. 9. Summary: So let's summarize everything we've looked at and have a little tour of our table. So we've begun with our income. We've placed the amount each person in the family earns to give us our complete total. We've calculated the percentage. Each person brings in of that total. And we've used that to calculate the amount that each person has to contribute each month to reach the total of the budget. We've also calculated how much leftover income each person has, which they could place in savings or spend in any way they want. Tied to this is our consistent outgoings. This is what we know that we will definitely spend each month. And we can add into this also outgoings that we hope to spend. This gives us our total budget for the month. Then we looked at keeping track of each item that we spend each month, categorizing it into broad categories and its level of importance to see what purchases we definitely need and which ones perhaps we regret. We use the data from this table to create a pivot table that allows us to categorize via categories and allows us to see which category is costing us the most each month. We then use the ground running total from our outgoings to see whether we're staying on track with our budget. We created our expenditure total. We saw how much we were spending in relation to our budget and how much we were spending in relation to our total income. So I hope this has been useful for you. I hope you can follow these steps which will allow you to keep track of your finances and stay on top of your money. I thank you for watching and I'll see you in the next one.