![]() ![]() As shown in Table 2.2 the mathematical operators in Excel are slightly different from those found on a typical calculator. This is the symbol for division in Excel. Excel will use whatever value is entered into cell D3 to produce an output. This adds D3 to the formula, which is now a cell reference. When the first character entered into a cell location is an equal sign, it signals Excel to perform a calculation or produce a logical output. Click the Budget Detail worksheet tab to open the worksheet.Open the Data file named CH2 Data and use the File/Save As command to save it with the new name CH2 Personal Budget.The following explains how this formula is created: This will show how much money will be spent per month for each of the categories listed in Column A. The formula will be constructed so that it takes the values in the Annual Spend column and divides them by 12. The first formula that we will add to the Budget Detail worksheet will calculate the Monthly Spend values. Includes any other spending categories, such as textbooks, software, journals, school or work supplies, and so on Money spent on entertainment, including dining out, movie and theater tickets, parties, and so on Money spent on school and property taxes (this example of the personal budget assumes that we own property). ![]() Money spent on homeowner’s or automobile insurance Money spent on clothes, shoes, and accessories Money spent on groceries, toiletries, and related items Money spent on electricity, heat, and water and on cable, phone, and Internet access Table 2.1 Spend Category Definitions Category Therefore, it is important to review the definitions in Table 2.1 to understand how we are defining these categories before proceeding. It is likely that every person could have different categories or define the same categories differently. When you develop a personal budget, these categories are defined on the basis of how you spend your money. Table 2.1 provides definitions for each of the spend categories listed in the range A3:A11. To complete this worksheet, we will add several formulas and functions. To demonstrate the construction of a basic formula, we will begin working on the Budget Detail worksheet in the Personal Budget workbook, which is shown in Figure 2.2. ![]() This is what gives Excel the ability to create a variety of what-if scenarios, which will be explained later in the chapter. As a result, when the numbers in the cell references are changed, Excel automatically produces a new output. This means that Excel uses, or references, the number entered into the cell location when calculating a mathematical output. Furthermore, when constructing a formula in Excel, you use cell locations that, when added to a formula, become cell references. Figure 2.1 Completed Personal Budget Workbook Creating a Basic Formulaįormulas are used to calculate a variety of mathematical outputs in Excel and can be used to create virtually any custom calculation required for your objective. ![]() As a result, the Budget Summary worksheet serves as an overview of the data that was entered and calculated in the other three worksheets of the workbook. The first worksheet, Budget Summary, contains formulas that utilize or reference the data in the other three worksheets. Notice that this workbook contains four worksheets. Excel can make managing your money a fun and rewarding exercise.įigure 2.1 shows the completed workbook that will be demonstrated in this chapter. Whether you are managing your expenses during college or maintaining the finances of a family of four, a personal budget can be a vital tool when making financial decisions. Organizing and maintaining a personal budget is a skill you can practice at any point in your life. Most financial advisors recommend that all households construct and maintain a personal budget to achieve and maintain strong financial health. The objective used for this chapter is the construction of a personal cash budget. This section reviews the fundamental skills for entering formulas into an Excel worksheet. Work with complex formulas by controlling the order of mathematical operations.Understand relative referencing when copying and pasting formulas. ![]()
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