Simple Steps for Creating a Budget in Excel

Want to know if you can afford a vacation?   How much you can save for retirement?   How you can pay off your mortgage faster?   These questions can all be answered if you have 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. 

What is a Budget?

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

How to Create a Budget in Excel

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

1. Identify Your Financial Goals

The most common time periods for a budget include a monthly or annual view. 

2. Determine the Period Your Budget Will Cover

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).

3. Calculate Your Total Income

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