Steps Required on How to Create a Budget in Excel

This post examines the steps required on how to create a budget in Excel.

What is a Budget?

A budget is a listing of your income and the amount you can afford to spend on your expenses and put into savings.

How to Create a Budget in Excel

As an overview, here are the steps necessary to create a budget in Excel:

1. Identify Your Financial Goals

For many of you, your goals will include down payments on houses, refinancing student loans, college for your children and funding retirement.

2. Determine the Period Your Budget Will Cover

If you budget for a month, it is critical to remember to add expenses that you don’t pay every month as you’ll need to set aside money in short-term savings to have the money when those expenses become due.

3. Calculate Your Total Income

Figure out how much Form W-2 or Form 1099 income you’re going to earn during your budgeting period (1099 vs. W-2 can result in different tax situations).

4. Begin Creating Your Excel Budget

Build a personal budget worksheet for tracking your expenses.  Consider using the free Excel budget template provided in the email signup above.

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