In this video, you will compare how much money you make with how much you spend.
To do this, you will calculate income and expenses.
Then, you will create categories for each kind of expenditure, like rent, food, entertainment, and others.
In the summary table, type “Income” in a cell.
In the cells beneath it, type “Expenses” and “Balance.”
The balance is the total amount of money you have left after you have subtracted all expenses.
Next, create formulas to calculate these totals.
In the data you copied, there are separate columns for debits and credits.
Debits are money that has been taken out of your account; credits are money that has been
added, or “Income.”
Calculate the total amount of money you earned beside the “Income” cell.
Click the cell and type “Equals.”
Formulas always begin with an equals sign.
Next, type SUM.
As you begin typing, an autofill menu appears.
You can select SUM from the menu.
Select the cells to add up.
In this case, it is all of the cells in column E that are beneath the summary table.
Select column E.
Column E is highlighted, and the formula reads “SUM E to E.”
This will add together ALL of the values in Column E.
To remove any values located in the summary table, use the formula bar to change the first
cell reference to E12.
Now the formula will add all of the cells in E12 and below.
Close the parentheses in your formula, and press Enter.
The spreadsheet automatically adds the values in the “Credits” column.
Repeat these steps for the “Debits” column.
In the cell beside “Expenses,” type “Equals” and SUM.
Type “D12” “colon” “D” in the formula and close the parentheses.
Check the highlighted column to be sure you are adding the right numbers.
Press Enter to calculate your total expenditures.
Now, create another formula to calculate the “balance,” or, the money you have left
over after paying all of your expenses.
In the cell beside “Balance,” Type “Equals” and select the cell with the income calculation.
Type “minus” and select the calculated expenses cell.
Then, press enter.
The amount you have left after expenses is now calculated in this cell.
In the next video, you will categorize your expenditures.
Then, you will use SUMIF formulas to calculate how much you spent in each category.
Now, it’s your turn:
Create cells for Income, Expenses, and Balance.
Beside these, add a formula to calculate the total income, expenses, and balance.
Then, move on to the next video to start categorizing the data.