A helpful tool for determining current financial status and planning future spending
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Written byCFI Team
A personal budget spreadsheet offers an individual a way to determinethe state of his finances and help him or her plan spending over the course of a period of usually a month or a year. Itmay very well be everyone’s best friend as it is the most helpful tool for organizing one’s finances in order to avoid falling into a debt hole. With a budget spreadsheet, money is managed, and every expense is allotted enough amount without exhausting the coffers.
How to Use a Budget Spreadsheet
There are many ways different people use budget spreadsheets. Some find it effective wherein they are actually able to track their expenditure, while some others don’t, which may be caused by several factors.
Here, let us learn how to use the budget spreadsheet the easiest way.
1. Put together all sources of income, as well as all expenses.
It depends on the number of sources of your income and if there is anyone else in the house who will help with the expenditure. A personal budget spreadsheet should be separate from the budget spreadsheet for the household. Couples can add up their individual sources of income to come up with the final income amount. The same process is followed in computing for expenditure.
2. Create savings goals.
After the total expenditure’s been deducted from the total income, check if there is any money left over. If there is, make a plan of what to do with the remainder instead of spending all of it on random things. For example, you may want to set a part of it aside for traveling or for an emergency fund. You can also indicate how much of the money left over you will allocate to each of the spending categories.
3. Come up with budget amounts.
After the first two steps, it is important to also create a budget for other necessities such as groceries, shopping, or date night. For couples, it is important to be open to one another and include what hobbies or crafts you want to spend on.
How to Create a Budget Spreadsheet
Budget spreadsheets can help an individual track his spending and plan his future expenditure. That is why creating one is of utmost importance. So how do we create a budget spreadsheet? Here’s how to make a really simple one that is good for beginners:
- Firstly, making one requires a desktop or laptop computer with MS Excel already installed.
- Run the Excel program on the computer and open a new file or spreadsheet.
- Put in the necessary details on the spreadsheet in order for it to calculate the figures involved in the file. Basic budget spreadsheets are often labeled with Income and Expenditure, which will be totaled by the file itself.
- Indicate the months that are included in the duration of the budget. If it applies for half a year, write January to June on every cell along one row.
- Then, type Income on one cell a row below the different months of the year. Under the category should be the types of income that you expect to receive each month.
- After the types of income, skip one cell and then write Expenditure, under which are the different types of expenses like shopping, groceries, bills, and others.
- After they’ve been put on the spreadsheet, you can begin writing down the calculation or formula which Excel will use at a later date once you need to see the total.
- Choose the part of the spreadsheet where you can write the total.
- Click the Menu button and click Autosum. Highlight the cells that you need to include in the Autosum by clicking on them and dragging them.
- Step 9 should be repeated with the Expenditure.
Free Budget Spreadsheets on the Internet
If figuring out how to make a budget spreadsheet is too much work, then here are some free budget spreadsheet programs that can be downloaded from the internet.
1. Household budgeting spreadsheet
The household budgeting spreadsheet is user-friendly and can be used even by beginners or first-timers. It comes with different features that are not complicated but help put the budget in order.
2. Williams Budgeting Sheet
The Williams Budgeting spreadsheet is effective for monthly budgets, and it comes with a written manual on how to use it, as well as a video tutorial for a better understanding of the program.
3. Free monthly budget templates
They are simple and easy to use wherein the user can input every purchased item and create a category under which these are placed. What makes the budget templates awesome is its feature that can compare the amount spent with the original budget.
4. Google Sheets budget spreadsheets
Under Google Sheets budgets are Best-Personal-Budget-Planner, Simple Budget Planner, and Yearly Budget Template.
5. CFI’s Free Budget Spreadsheet
CFI’s free budget templates can simply be downloaded for free and used with MS Excel, as well as with other spreadsheet software that works with Excel. They can also compare actual spending with the original budget.
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Personal Finance Budget Template
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Thank you for reading CFI’s guide to Personal Budget Spreadsheet. To keep learning and developing your knowledge of financial analysis, we highly recommend the additional resources below:
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- See all Excel resources
I'm an experienced financial expert with a deep understanding of budgeting and personal finance. My expertise extends to utilizing tools like budget spreadsheets for effective financial management. Let me provide you with insights related to the concepts discussed in the article about personal budget spreadsheets.
The article emphasizes the importance of a personal budget spreadsheet as a crucial tool for managing finances and avoiding debt. Here are key concepts discussed:
Determining Financial Status:
- The personal budget spreadsheet is highlighted as a helpful tool to determine an individual's financial state.
- It aids in planning spending over a specific period, typically a month or a year.
How to Use a Budget Spreadsheet:
- The process involves gathering all sources of income and listing all expenses.
- Couples are encouraged to create separate personal budget spreadsheets and then combine their individual incomes and expenditures.
- Setting savings goals is emphasized after deducting total expenditures from total income.
- Allocating the remaining money to specific spending categories is recommended.
Creating a Budget Spreadsheet:
- The article provides a step-by-step guide for creating a budget spreadsheet using MS Excel.
- It includes labeling income and expenditure categories, specifying months, and using formulas for automatic calculations.
- The importance of including various expense categories like groceries, shopping, and date night is stressed.
Free Budget Spreadsheets on the Internet:
- The article mentions several free budget spreadsheet programs available for download.
- Examples include household budgeting spreadsheets, Williams Budgeting Sheet, free monthly budget templates, and Google Sheets budget spreadsheets.
- CFI's free budget templates are highlighted as downloadable for use with MS Excel.
- The article concludes by offering readers additional resources for further learning about personal finance and financial analysis.
In summary, the article provides a comprehensive guide on using personal budget spreadsheets, from determining financial status to creating and utilizing the tool effectively. It also suggests various free budget spreadsheet programs for those who may find creating one from scratch challenging.