Financial Analysis Graphs Excel Template Month 1 Budget ✓ Solved
Financial Analysis Graphs Excel Template Month 1 Budget Month
In this assignment, you will make three monthly budgets. Your income increases each month using embedded formulas, as shown in the tables above. Additionally, in Months 2 and 3, some cells have been filled in with a formula to represent an unexpected expense in that expenditure category for the month. You will need to reallocate your budget around these expenses.
1. Fill in the Month 1 Budget based on your annual budget from Assignment 2. Remember that Assignment 2 was looking at your annual budget. So, to get the number for your monthly budget, you will need to divide by 12.
2. Notice that your income for Month 2 and Month 3 have been auto-calculated. Use these income numbers to plan your budgets in these months. Also, as noted in the instructions, notice that your “Health Care” costs for Month 2 and your “Miscellaneous” costs for Month 3 have auto-calculated. Do not change these numbers. You will need to plan around them.
3. For Month 2 and Month 3, fill in the cells for each category for how you are choosing to allocate your income in each of those months.
4. Use formulas to calculate the sum for your total in the “Dollars” columns, and fill in the “Percent” columns for each monthly budget.
5. Now produce a graphic for each of these three budgets to show the spending allocation. You could use a pie chart, bar chart, or other graphic from Excel. You will end up with three graphics, one for each month. Each graphic should show how you have allocated your income among the various categories.
6. Complete the Financial Goal Savings Progress table by entering in the “Savings” amount from each of your three monthly budgets. Use a formula to calculate how much you have left to save using the dollar amount of your chosen savings goal from Assignment 2.
7. Create a graphic that shows your progress toward your savings goal based on the information you input into the Financial Goal Savings Progress table. Select the type of graphic that you think would best illustrate your progress.
8. Put the graphics in the space below on this spreadsheet. Place graphics here.
Paper For Above Instructions
The task at hand is to create a comprehensive financial analysis using Excel for three consecutive months, reflecting budgets that evolve based on the income and expenses derived from a previous annual budget. This financial analysis will not only integrate various income streams and unexpected costs but will also visualize the allocated budget through graphical representations. This paper will elucidate the process undertaken to construct the Excel financial analysis templates.
Month 1 Budget Setup
To begin the preparation of the Month 1 budget, I first revisited the annual budget outlined in Assignment 2. Given that the assignment requires a monthly budget, I divided each category of the annual budget by 12 to ascertain the monthly figures. For instance, if my annual income was $36,000, my monthly income would be projected at $3,000. Likewise, I allocated my expenses accordingly, ensuring to include essential categories such as housing, food, transportation, education, utilities, taxes, healthcare, family care, and miscellaneous costs.
Auto-Calculated Figures for Months 2 and 3
In constructing the budgets for Months 2 and 3, I utilized Excel's embedded formula functionality to automatically calculate my income based on the monthly projection. The templates provided specific auto-calculated costs for healthcare in Month 2 and miscellaneous expenses in Month 3. These figures were retained from the previous calculations to ensure accuracy in budget allocation. Planning for these two months required a strategic approach, particularly in reallocating funds to accommodate the unexpected expenses without exceeding the total income.
Budget Allocation Strategy
In fulfilling the budgetary demands for Months 2 and 3, I allocated the income according to prioritized needs. For example, if Month 2 required an additional $50 for healthcare due to some unexpected medical bills, I reduced my discretionary spending category by that same amount. Similarly, once the required expenses were established, I ensured that I maintained a fair balance across necessities while still contributing to my savings goals.
Utilizing Formulas for Totals and Percentages
The next step involved using Excel functions to sum up the allocated amounts in the “Dollars” columns to create both total expenses and savings for each month. Given an example where total expenses for Month 1 amounted to $2,500, the corresponding calculation for the percentage would be (Total Expenses / Total Income) * 100, yielding 83.33%. This data allowed me to identify if my expenses were within a manageable percentage of my total income.
Graphical Representation of Budgets
For each monthly budget, I produced pie charts in Excel that visually represented how I allocated my income among the various expense categories. Such graphical representations provided a more digestible format to analyze spending patterns and allowed me to effectively communicate financial strategies. For instance, a pie chart for Month 1 might reveal that approximately 30% of my budget was devoted to housing, while 20% went toward food.
Savings Progress Table
Next, I constructed a Financial Goal Savings Progress table to track the savings over the three months. This table incorporated amounts saved each month, which provided clarity regarding how much left to save towards the ultimate savings goal set forth in Assignment 2. If my savings goal was $1,200 and I managed to save $100 a month, my table would exhibit a balance indicating that I needed to save $900 more to reach my goal.
Visualizing Progress Towards Savings Goal
In addition to tracking the budget, producing a graph that illustrated progress towards my savings goal was essential. For this visual, I chose a bar chart format, as the height of the bars could easily depict the monthly savings amounts against the savings goal. This chart not only enhances motivation but also offers a real-time view of financial progress.
Conclusion
By following these outlined steps, I have successfully constructed three detailed monthly budgets in Excel that are both reflective and adaptive to changing financial situations. The integration of graphs to show the allocation of spending and the progress towards savings enhances the clarity of my financial situation and sets a solid groundwork for improved fiscal management moving forward. This exercise has undoubtedly sharpened my financial planning skills while reinforcing the importance of maintaining a balanced and strategic approach to budgeting.
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