# create a simple budget, and track our budget compliance over the course of a 12 month period

12/09/2019
12/09/2019

### Assignment Instructions

For this exercise we are going to create a simple budget, and track our budget compliance over the course of a 12 month period.  Although it is possible (and common) to track budget compliance on a month to month basis, to keep things simple for this exercise we are going to only examine the year end result.

Start by creating a budget in Excel in the following format.

For the starting budget \$ amounts you use the following logic.  Determine the yearly values and enter them into your budget.  Don’t forget to add the totals, and to determine the amount you are short/extra.

Salary = \$4,000 a month

Rent = \$1200 a month

Car payment = \$650 a month

Phone = \$95 a month

Health Insurance = \$250 a month

Food = \$500 a month

We are now going to add the following data for the monthly amounts in out spreadsheet

Salary:  Your starting salary for the year is \$4,000 a month.  In June you get a 3% pay increase.

Additionally you get a one-time bonus payout of \$500 in October.

Rent:  Your monthly rent per your lease is \$1,200 a month, with a 5% increase in November.

Car:  Your car is under lease at a rate of \$650 a month.

Phone:  Your month rate for your phone is \$95 a month, but you incurred overage charges of \$25 each in the months of April, August, and December.

Health Insurance:  Your monthly installments for health insurance are \$250 a month.

Food: Food expense tends to be more varied than the other expenses be captured.  Use the follow table to enter your food expenses.

Other:  In the month of March you have a car repair bill of \$750 and in August you took a \$125 flight to visit your parents.