AnalyzingData in a Personal Budget Workbook
MicrosoftExcel is a useful accounting tool. It helps to clearly present data.This paper will use Excel features in analyzingdata in a personal budget workbook.
Theworkbook provides a comprehensive analysis of a personal budget. Thebudget classifies income as the business income, employment income orother income. The greatest source of income is the employment income.The highest amount of employment income, $16, 7812 is in January.From February to December, the monthly income is $12,782. Theemployment income for January may have been higher than the incomefor the other months due to bonuses for the previous year (thedifference is $5,000). Companies usually pay bonuses as an incentiveto workers. The income for the year is $157,384.
Thehighest business income is $8,272 (in July) while the lowest is$4,162 (in January). On average, the business income is $5,399.08.
Thetotal amount from other sources of income for the whole year is$48,835. These sources averagely earn $4,069.58. The maximum annualamount, earned from these sources, for the 12 months is $9,102 whilethe minimum is $232.
Excelscenario manager makes automating what if models easy (Walkenbach,2013).The what-if examination in the workbook uses the scenario manager. Itclearly indicates the behavior of the net income/ loss when businessincome increases or decreases. The analysis is for the month ofDecember. The table below clearly illustrates that.
High business income
Low Business Income
Domesticexpenses total to $101,230 in a year which is an average of 7,786.92.Most of it, $ 30,204, is rent. The most amount of money is on cablepayment which amounts to $1,452.
Healthexpenses total to $18,406 in a year and average to $3,067.67. Most ofthe healthcare expense, $3,888, is due to the health insurance whileleast amount of money, $1200 is spent on pet care in a year.
$22,510is the total spent annually on transport. Most of the transport cost$5,400 is for repair and maintenance cost while the least is for thecar insurance. The average spent on transportation is $3,751.67.
Dailyliving expenses consume a considerable amount of money. The totalcost is $53,261. On average 5,917.89 is spent on items related todaily living expenses. Most money, $15,024, goes to education andlessons while the least goes into paying the barber ($2,532).
Theamount for entertainment-related expenses is $27,478 in a year. Theaverage amount spent on all forms of entertainment is $2,747.8. Mostmoney $ 4,980, is spent on vacations while the least, $1,344, isallocated to photos and film.
Ina year $25,672 goes into saving, and investment and the averagesavings, considering savings related activities are $ 5,134.4. Mostmoney $ 7,404 goes into investment and the least money $3,852 goesinto the emergency fund.
$6,129pays for all the subscriptions in a year. On average $1,532 goes intopaying for subscriptions. Most money, $1980, goes into subscriptiondues while the least,$1089, goes into other subscription relatedexpenses.
Loansand other debt liabilities cost $ 17,637. The average of theseexpenses is $ 3,527.4. The most $4,980 is due to a personal bank loanand the least, $2,325, due to other liabilities.
Inconclusion, the biggest expense, $101,230, are domestic expenses. Ofthese expenses, rent is the highest and costs $30,204 annually. Theleast amount of money, $6,129 goes into the subscriptions. Of theseexpenses, other subscription related expenses cost the least, $1089,annually. It is important during the analysis, to note that pivottables do not automatically update to reflect changes in source data.If a model relies on pivot tables, these need updating (Marsh,2013). Thepivot table and pivot chart are in the budget workbook.
Marsh,C. (2013). Businessand financial models.London Philadelphia, PA
Walkenbach,J. (2013). Excel2007 bible.Hoboken, N.J: Wiley.