Create your personal budget.
Create your personal budget.
For the next twelve-month period beginning in January and ending in December, forecast your income for each month, your base expenditures for each month, and your special expenditures for each month.
You have to create an actual personal budget. The figures must be real. If you have never created a budget, this is an excellent opportunity for you to learn to budget your money and see where your money is going and what financial goals you have for yourself. Note: your budget file is shared only with the instructor, and will not be visible to other students. Please make sure to use the concepts you have learned in this class. Do not use any outside budget samples. Use only the Excel spreadsheet and the concepts that you have learned.
Before you begin to create the spreadsheet, please list all your income for each month and your expenses for each month. The expenses will include but not be limited to:
income: salary, annuities, income from stocks and bonds, government checks, and financial aid grants, as examples.
fixed: rent/mortgage, utilities, cable, phone, credit cards, car payments, car insurance, public transportation, health insurance if not covered by your employer, as examples.
flexible: food/groceries, entertainment, clothing, gifts, tuition or school fees, personal care such as nails and hair, gym membership, medications, doctor co-pays, dentist visits, eye exams, and glasses/contacts, and vitamins as examples.
THE TASKS:
Create the spreadsheet based on the list you created for the monthly income, and fixed and flexible monthly expenses.
Create the formula for the net income for each month. The net income is income minus expenses.
Cash flow exercise. Suppose that you start the year with x amount in the bank. At the end of every month, add/subtract the net income for the month to see what your month-end cash is. Each month’s month-end cash amount becomes the next month’s cash in the bank.
Format the spreadsheet using Currency Number formatting with the dollar sign at the beginning balance and total for each column. Use any cell styles, alignment, font options, colors, and borders as you see fit.
Create a line chart for month-to-month cash flow and a pie chart for yearly expenses by category. Create the charts in a new tab in your Excel spreadsheet.
PERSONAL BUDGET CHART
After you have created your personal budget in an Excel spreadsheet, create the following charts:
a line chart for month-to-month cash flow
a column chart that shows the income and expenses for each month. You may use any variation of the column chart that you wish.
a pie chart for yearly expenses by category.
Create the charts in a new tab(s) in your Excel spreadsheet and NOT a separate Excel spreadsheet.
Based on the charts you have created, analyze your budget in a Word document, separate from the Excel spreadsheet and charts. Your analysis should highlight your financial goals for the following year, the highest expenses, and any ways in which you will make changes to your spending habits so that you can achieve your financial goals. You can copy and paste any of the charts that will support your budget analysis from Excel into the Word document.
Monthly Income is $2,800
Monthly Interest is $19
Monthly gas bill is $50
Monthly Insurance is $100
Monthly gym membership is $27
Co Payment for doctors is $10
Monthly Haircut bill is $65
Groceries $150
