Calculating expenditures is an important personal accounting process that can keep a consumer out of debt. Whether you choose to use a monthly or yearly budget, you need to document your spending. Living within your wages is the only way to stay out of debt or save money. Every month you will be forced to pay numerous bills to sustain your livelihood. Gas, water and electricity bills are just some of the purchases you will make every month.
Things You'll Need
- Microsoft Excel
- Recent Bills
- Lease/Mortgage paperwork
Open a new spreadsheet in Microsoft excel.
List each type of bill or expense you will have every month in the first column. Each individual expense must have its own box.
Add the price of each purchase in the corresponding box in column two. For example, the price your pay for gas should be found in the box next to gas in column two.
Use your recent bills to calculate the cost of your gas, electric and water bills.
Calculate your total monthly purchases by adding every expense in column two.
Subtract your total expenses from your monthly income. This total will represent how much money you will have after all of your necessary purchases. If you are in the negative, you will incur that much debt each month.