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3 Home Budget
Task explanation.
Building your home and personal budget is an important skill to maintain financial sanity! First, we will define the spending and then we will define the earnings. You will be able to save this file and keep it after this class to maintain a good idea of the way you are spending your money. During this COVID19 Season, we learned that life could send some curveballs and maintaining a budget can help you find if what you are doing is the best you could be doing!
🌶 Spicy Challenge. 🌶
WOW. You want to SPICE IT UP… After this full day of training? Courageous.
Let’s go
You now used one sheet to plan your spending, now you could use a sheet to plan your income. Maybe you receive income in multiple ways. Rent, Interest, Work, Side Jobs or even maybe family work. Ultimately, you might want to have a sheet to plan income. How could you keep this dashboard the same but use another sheet to plan your income.
How to details.
To build a budget you start a document from Scratch. So get a Blank Excel Document open and let's get to it.
First we will figure out our spending by Paiement interval.
First we will list our Yearly Costs, our Monthly Costs, our Weekly costs and finally our daily costs. By finding all of the costs you have by interval you will figure out how much you are spending.
Think about your appartment, your rent, your ammenities, your communications and your habits.
Set it up how you want it, but I could recommend you Set It all in collumns like this exemple
Next part will be to find the totals on the interval you choose. In Canada we generally calculate earning by year. If you know your income monthly this exercise changes slightly but can be done also
In Another area, next to the data find the totals for all your values and multiply them by the right interval.
Here are the formulas used:
=SUM(B:B)
=SUM(E:E)*12
=SUM(H:H)*52
=SUM(K:K)*365
=SUM(N2:N5)
Well now you know how much your life costs a year.
Maybe you want to know by month how much and by week. You can do all this by adding these formulas under.
=N7/12
=N7/52
As well as go under and input your yearly Salary.
If you wrote your salary in Gross amount. You can visit this site to find your Average Tax Rate http://www.calculconversion.com/calcul-impots-quebec.html
Visit a province to the left, type your income and it will figure out your average rate. For me in Quebec, the average tax rate for 52000 a year is 20.84%
I need to calculate how much that represents so I can do this formula:
=N12-N12*N13
All that is missing is to compare how much you have free per year/month/week to know if it would be a good idea to spend money in the future!
Here are the formulas I will use:
=N14-N7
=N17/12
=N17/52
Here's one last final tip I like to offer. If you take all of the column M and N and Cut (NOT COPY) with CTRL - X and go to another sheet and HIT CTRL - V you will see your numbers show up in this sheet.
You can name it "Budget Dashboard" - If you change your other sheet name to "Spending"
For the Spicy Challenge 🌶
There is a lot of ways of doing this type of exercise, I hope you enjoyed this one.
Here is how you could track your income. Duplicate your SPENDING sheet by right clicking on it and choosing Move or Copy and Checking the option “Create a copy”. HIT OK and change the name of the sheet to INCOME. And make sure the name of your other sheet is SPENDING
Delete all your amounts and change them for your income amounts
Now that you have this done.
Go back to your dashboard sheet and insert 5 new rows after the TOTAL SPENDING category line. Just select row 11 to 15 and right click –> Insert
Copy Row 1 to 5 and paste it in the row 11
Select B11 to B15 and HIT CTRL-H and replace the word “Spending” to the word “Income”
All your functions should be up to date.
Adjust your total and add some text to remember to update the average rate online
Here is the new formula for the total income
=SUM(B12:B15)
Congratulations, Here's mine if you wanted to see it!
