1) Gather the Data related to your montly cash inflows and outlfows. For examles, how much do you take home in your paychecks eah monrth (4000). What orther sources of income do you have? What expenses do you have-rent (821), Utilites (32) Gas (60) (insurance (125) Groceries (200) entertainment (100) car (380) cell phone (10)
2)Creat a new workbook for the sample financial data. Use the first worksheet as a documentation sheet that includes your name, and date on which you start creating the workbook, and a brief descritpion of the workbooks pruspose.
3) Plan the structure of the second worksheet, which will contain the budget. Include a setion to enter values that remain consistent from month to month, such as monthly income and expenses. AS you develop the budget worksheet, reference these cells in formulas that require those values. Later you can update any of these vlaues to see the changes immdeiately relfeted throughout the budget.
4) In the budget worksheet, enter realistic monthly earnings for each month of the year. Use formulas to calculate the total earnings each month, average montlhy earnings, and the total earnings for the entire year.
5) In the budget worksheet, eneter realistic personal expenses for each month. Divide the expenses into at least three ctegories, proiding subtotals for ech category and grand total of all the monthly expense. Calculate the average monthly expense and total expense for the year.
6) Calculate the monthly net cash flow (the value of total income minus total expenses)
7) Use the cash flow values to track the savings throughout the year. Use realistic amount for savings at the beginning of the year. Use the montly net chas flow values to add or subtract fom the value. Project the end-of-war balance in the savings account under your propsed budget.
8). Format the worksheets contents using appropriate text and number formats. Add colors and border to make the content easier to read and interpret. Use cell styles and themes to provide your worksheet with a uniform apperance.
9) Use conditional formatting to automatically hightlight negtive net cash flow months.
10) insert a pie charge thta compares the monthly expenese for the categories.
11) Insert a column chart that charts all of the monthly expenses regardless of the category.
12)Insert a line charge or sparkline that shows the change in the savings balance trhoughtout the 12 months of the year.
13) Insert new rows t the top of the worksheet and enter titles tht describe the worksheet’s contents
14) Examine your assumptions. How likely are cwertain events to occur? Perform several what-if analyses on your budget. providing the impact of (a) reducting income with expenses remaining constant, (b) increasing expenses with income remaining constant, (c) reducting income and expenses, and (d) increasing income and expenses. Discuss the different scenarios you explored. How much cushion does your project income give you if expenses increas? what are some thinks you can do in your budget to accommodate this scenario.
15)Thinking of a major purchase you might want to make- for example, a car or a house. Determine the amount of the purcchase and the current annual interest rate charged by your local bacnk. Provide a reasonalbe lenght of time to repay the loan, such as five years for a car loan or 20 to 30 years for a home loan. Use the PMT function to determine how much you would have to spend heac month on paymnets for your purchased. You can do calculations on separate worksheet.
16) Add the loan information to your monlthy budget and evaluate the purchase of this item on your budget. Is it affordable Examine other possible loans you might purse and evaluate their impact on your budget. Come up with the most realistic way of paying off the loan while still maintaing a reasonable monthly cash flow and a cushion agains unexpect expenses. If the payment exceeds your budget, reduce the estimated price of the itesm youre thinking of purchaseing until you determine the monty payment you can afford under the conditions of the loan.
17. after settling on a budget and the terms of a loan that can afford, develop an action plan for putting your budget into place. What are some potential pitfalls that will prohibit you from the following through on your proposed budget? How can you increase the likelihood that you will follow the budget? be specific, and write down a list of goals and benchmarks that you’ll use to monitor your progress in the folliwng your finical plan.
Are you looking for a similar paper or any other quality academic essay? Then look no further. Our research paper writing service is what you require. Our team of experienced writers is on standby to deliver to you an original paper as per your specified instructions with zero plagiarism guaranteed. This is the perfect way you can prepare your own unique academic paper and score the grades you deserve.
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.[order_calculator]