In this video, you will calculate your monthly savings balance
by comparing how much money you make with how much you spend.

Your balance is the amount left over after you subtract total expenses from total income.

Calculating your balance will show you how much money remains
after you pay your expenses each month.

This is money you could use to increase your savings.

To calculate your monthly balance, you will make a spreadsheet table,
enter your monthly income and expenses, and create a spreadsheet formula
to calculate your monthly balance.

To begin, open your spreadsheet.

Your spreadsheet is automatically saved in Google Drive, and you can come back to it anytime.

To calculate your balance, you will subtract the total amount of your monthly expenses
from your monthly income.

First, set up a table for your calculations to the right of your expense table.

Next, enter the values for each category.

Your spreadsheet already lists the total amount of your monthly expenses.

Enter this value in the new table.

Now, enter the total amount of your monthly income.

Your primary form of income is probably your monthly salary.

In any given month, you may also have other forms of income,
such as a check you receive as a birthday gift
or money you gain from the sale of a personal item.

For this lesson, you don’t need to know the exact amount of your income, just an estimate.

Next, create a spreadsheet formula to calculate your monthly balance.

Your balance is equal to income minus expenses.

Formulas begin with an equals sign.

To calculate your balance, the formula should subtract the cell
containing the value of your expenses from the cell containing the value of your income.

The spreadsheet automatically calculates your balance.

Nice job!

Now you know your monthly balance.

You could choose to save this money in your bank account, invest it, or use it for other purchases.

Keeping track of your monthly balance is an important part of managing your personal finances.

Now, it’s your turn. Make a spreadsheet table,
enter your monthly expenses, enter your monthly income,
and create a spreadsheet formula to calculate your monthly balance.