While Word might be the simplest application for listing your personal income and expenses, using Excel is the easiest way to create and use a budget, based on the formulas you can create to have the budget do the work for you, instead of vice versa.
Common reports for personal budgets made using Excel include "Total," "Actual," "Average Monthly," and "Projected." To create these reports, you'll enter formulas into specific fields.
If line 3 of your budget is groceries, you can keep track of your average monthly spending on groceries as the year progresses, see your total spending year-to-date and project what your year-end-total will be based on your current spending.
To determine your average spending, you divide your total spending by the months that have passed.
To project your year-end spending, you multiply your average monthly spending by 12.
If you can spend 10 minutes on the phone with a friend who uses Excel, you can skip the Office tutorial.
Once you create your initial budget document, you no longer have to perform any math - your Excel budget does it for you.