Entering this formula will tell Excel to subtract the federal and state tax amounts from the salary amount to determine the monthly available income of \$3,200 after taxes.

As indicated in the guidance for Week 3 Excel can be used for many purposes.  For example, Excel can be used to develop and track your personal income and expenses against a monthly budget.  Assume a family has developed a monthly budget and desires to compare actual expenses for July to their budget.

Before we begin, for income and savings we use the formula (Actual – Budget) and for costs or expenses we use the formula (Budget – Actual).  We do this because we are trying to determine whether the difference or variance is better or worse.  It is better to earn a higher salary but it is worse to spend more than budget.

Here are the detailed instructions:

1. In cell A1, enter the following title for this worksheet: Personal Budget vs. Actuals.
2. In cell A3, enter the following: Item.
3. In cell B3, enter the following: Factor.
4. In cell C3, enter the following: Budget Amount.
5. In cell C4, enter the following: Per Month.
6. In cell D3, enter the following: Actual Amount.
7. In cell D4, enter the following: July.
8. In cell E3, enter the following: Difference.
9. In cell E4, enter the following: (Better/Worse)

Be sure to expand the columns so that the contents don’t overlap the adjacent columns. At this point, this is what your spreadsheet should look like:

The following set of instructions will build your line items list:

1. In cell A5, enter the following: Salary
2. In cell A6, enter the following: Federal Taxes
3. In cell A7, enter the following: State Taxes
4. In cell A8, enter the following: Available Income
5. Leave cell A9 blank.  Leave all other cells in row 9 blank
6. In cell A10, enter the following: Living Expenses: Rent/utilities/groceries/phone
7. In cell A11 through A14, use the example below to determine what should be entered.
8. In cell A15, enter the following: Total Expenses
9. Leave cell A16 blank, and leave all other cells in row 16 blank.
10. In cell A17, enter the following: Savings

This is what you should see in your line items list:

1. In cell B6, enter the following: 15%
2. In cell B7, enter the following: 5%
3. Leave all other cells in column B blank

This is how it should appear:

The following set of instructions will help you create formulas in your spreadsheet. Excel has built in formulas to make calculating data easier. Formulas always begin with the equal sign (=) which tells Excel that a formula is being entered.

1. In cell C5, enter the following:  4000
2. In cell C6, enter the following:  =+B6*C5

Entering this formula will tell Excel to multiply the 15% federal tax rate within cell B6 by the \$4,000 monthly amount in C5, which will return a \$600 federal tax cost.

3. In cell C7, enter the following: =+B7*C5

Entering this formula will tell Excel to multiply the 5% state tax rate within cell B7 by the \$4,000 monthly amount in C5, which will return a \$200 state tax cost.

4. In cell C8, enter the following:  =+C5-C6-C7

Entering this formula will tell Excel to subtract the federal and state tax amounts from the salary amount to determine the monthly available income of \$3,200 after taxes. Continue with the following instructions to enter the remaining data and formulas into your spread sheet.

5. In cell C10, enter the following: 1625
6. In cell C11, enter the following: 150
7. In cell C12, enter the following:  300
8.  In cell C13, enter the following: 350
9. In cell C14, enter the following: 725
10. In cell C15, enter the following: formula: =SUM(C10:C14)
11. In cell C16, enter the following: blank
12. In cell C17, enter the following  formula: =C8-C15
13. In cell D5, enter the following: 4100
14. In cell D6, enter the following: =+D5*B6
15. In cell D7, enter the following: =+D5*B7
16. Place the cursor over cell C8, presspress Ctrl and C at the same time, and move the cursor to cell D8, presspress Ctrl and  V at the same time.  You should see \$3,280.  You copied and pasted the formula from C8 into D8.  From now on we will just say “press Ctrl C” for copy and “press Ctrl V” for paste.
17. In cell D10, enter the following: 1682
18. In cell D11, enter the following: 165
19. In cells D12, enter the following: 270
20. In cell D13, enter the following: 295
21. In cell D14, enter the following: 715
22. Place the cursor over cell C15, press Ctrl C, move the cursor to cell D15, press Ctrl V.  You should see 3127.  You copied and pasted the formula from C15 into D15.
23. Place the cursor over cell C17, press Ctrl C, move the cursor to cell D17, press Ctrl V.  You should see 153.  You copied and pasted the formula from C17 into D17.
24. In cell E5, enter the following: =+D5-C5
25. In cell E6, enter the following: =+C6-D6
26. In cell E7, enter the following: =+C7-D7
27. In cell E8, enter the following: =+D8-C8
28. In cell E10, enter the following: =+C10-D10
29. Place the cursor over cell E10, press Ctrl C, with the cursor highlight cells E11 through E14 then press Ctrl V.
30. In cell E15, enter the following: =+C15-D15
31. In cell E17, enter the following: =+D17-C17. You are almost done.