Please remember that the classification varies from person to person. Under each category, you will find sub-categories. There are some broad expense categories like Necessary Expenses (column C), Occasional Expenses (column D), Regular Repayments (column E), etc. The income sources are followed by the expense sources. We have listed some common income sources in our budget. Next comes the categorization of income sources. In our example, we will have a monthly budget. The time period of a personal budget can vary based on an individual’s needs and preferences, ranging from a monthly budget to a yearly budget or even longer. The first step is to set a time period for the budget. This step-by-step tutorial will show you how to establish a budget in Excel that can be readily modified to match your needs, regardless of how straightforward or intricate the budgeting is. How to Create a Personal Budget in Excel: With Easy StepsĬreating a personal budget is a difficult task, especially if you are not using the application frequently. It can also help individuals prepare for unexpected expenses and save for future purchases or investments. By tracking these expenses, individuals can identify areas where they can reduce costs or increase savings.Ĭreating and sticking to a personal budget is an effective way to manage money, pay off debt, and achieve financial goals. The personal budget typically includes all sources of income, such as wages, bonuses, and investment income, as well as all expenses, such as rent or mortgage payments, utilities, food, transportation, entertainment, and savings. It provides a clear overview of how much money an individual has coming in and going out, which can help them make informed decisions about their finances. Refer to the image below.Related Articles Introduction to Personal BudgetĪ personal budget is a financial plan that outlines an individual’s income and expenses over a specific period, usually a month or a year. At the end of the list, type "Other" for income obtained from miscellaneous sources, and type "TOTAL" in the cell below. Then, starting from cell B3, list down your income sources like paycheck, bonus, interest, and gifts in a column, one below the other. Next, we'll create an income section that lists all your earnings. Type the names of the months (January to December) in a row from cell C2 to N2, and type "TOTAL" in the O2 cell to sum up the annual figures. The first step in structuring your budget is to create headers. Create Headers for Income and Expenses in Your Excel Budget Note that we're creating an annual budget from scratch in this guide, but you can find free templates if you want to expedite this process. Once you're ready, open a new Excel worksheet. This will be easier to do if you already have a habit of tracking your transactions. This includes your bills, bank statements, paychecks, tax forms, and everything else. Structuring Your Budget in Excelīefore we begin, make sure you gather all your financial information in one place. We'll show you how to create a personal budget in Excel and learn to manage your money better. Which is where creating a budget and sticking to it proves its worth. Like most people, you probably worry about your finances often.
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