This online workshop is intended to show you how to create a very basic budget. A budget is a financial plan used to manage income and expenses. Before you begin, please read the "Getting Started" page located at the right of your screen.
Happy Learning!
overview
The objective of this workshop is to teach you how to create a basic budget using an Excel spreadsheet. Participants should already know how to use the basic functions of Excel. If you do not, please go back to the "Getting Started" page and scroll down to the Microsoft® Word and Excel section.
The information presented herein can be used for both Small Business AND Household budgets.
Upon completion of this workshop, you will be able to:
1. understand the difference between income and expenses
2. create a budget using an Excel spreadsheet
3. track your spending habits and make adjustments accordingly
to-do list
1. gather paystubs and other income information
2. gather all monthly bills
3. make a list of quarterly and annual bills
4. open a blank Excel spreadsheet
5. complete the modules below
6. if you have questions, contact the facilitator
7. take the survey at the end of this workshop
module 1
Let's break the ice! Contrary to what you may believe about budgets, it's really not that bad...
module 2
On this next video, you will learn how to build and create a budget. The video moves quickly so I suggest you pause it often to take notes and watch it a few times.
module 3
Okay, you're doing great!
Let's learn how to setup a budget worksheet using Excel. Please watch this video several times until you get the gist of it. Makes sure you take good notes to use for module 4!
module 4
Now it's time to create your very own basic budget! Below is a sample budget for a small business just starting out.
To create a household budget, simply fill in your personal income and expenses.
You will also find step-by-step instructions directly below the diagram.
| SMALL BUSINESS BUDGET-EXAMPLE | ||||||
| Description | January | February | March | April | May | June |
| Income | ||||||
| Professional fees | 5000 | |||||
| Investments | 500 | |||||
| Sales | 1500 | |||||
| xx | 0 | |||||
| xx | 0 | |||||
| xx | 0 | |||||
| Total Income | 7000 | |||||
| Expenses | ||||||
| Rent | 1500 | |||||
| Advertising | 500 | |||||
| Telephone | 150 | |||||
| Office Supplies | 250 | |||||
| Insurance | 250 | |||||
| Other Expenses | 2500 | |||||
| xx | 0 | |||||
| xx | 0 | |||||
| xx | 0 | |||||
| Total Expenses | 5150 | |||||
| Balance | 1850 |
step-by-step
- Gather your budget info - income, bills, and a list of quarterly and annual expenses.
- Open a blank Excel spreadsheet.
- At the top left corner, type the word "BUDGET".
- Skip a row.
- Insert column headings: "Description, then January thru June" (see example above).
- Skip a row.
- Type the word "Income" under the Description heading. Directly below "Income", list your income sources and enter the amounts in the appropriate columns/month.
- Leave at least three to five rows blank.
- Then type "Total Income" and add the total by entering a formula.
- Skip two rows.
- Type the word "Expenses" under the Description heading. Directly below it, list all of your expenses and enter the amounts in the appropriate columns/month.
- Leave about three to five rows blank.
- Then type "Total Expenses" and add the total by entering a formula.
- Skip a row.
- Then type the word "Balance" and enter your formula.
- Save your work.
- Review your entries for accuracy.
- If your Balance is a negative number, it means you don't have enough money to pay your bills and put money away in your savings. In that case you might consider cutting back on some of your expenses and/or perhaps taking on additional work.
things to remember
- Save your spreadsheet changes often by clicking the "save" icon at the top of the screen.
- In order to see your budget for each month, add a new column for every month as shown in the example above.
- After you have a good grasp on how to manage your budget, consider purchasing software to record the transactions and keep accurate records for tax purposes. See the link below.
- Any questions or remarks? Please include it in your survey.
links to resources
why budgeting is important
lecture on budgeting
saveandinvest.org
budget software
Save money by visiting your local library to borrow books about Budgeting.
survey
To help us develop better online workshops, please take a moment to complete an anonymous survey. Click here to complete the SURVEY or access it from the main menu.
Thank you for participating in this online workshop. Please tell a friend!
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Sources:
Amazon.com, http://www.amazon.com
eHow, http://www.ehow.com/about_4600606_why-budgeting-important.html
GCF Learn Free.org®, http://www.gcflearnfree.org/
Microsoft Windows®, http://www.microsoft.com/en-us/default.aspx
Save and Invest.org, http://www.saveandinvest.org/
Survey Monkey, https://www.surveymonkey.com/
YouTube, http://www.youtube.com/
