Excel basics Build a budget

Is your monthly budget scribbled on an envelope and pinned to the fridge? It's not the best way to manage your finances – why not let Microsoft's Excel spreadsheet do the hard work for you? It's easier than you might think – follow our simple steps.

1Enter data

A spreadsheet is made up of individual blocks known as cells. To enter a piece of data (how much you spent on your mortgage, say) click on a cell. Cells are identified by row numbers and column letters such as A1 or D14.

2Row and column headings

We've added headings to show how much we've spent at the supermarket, on car maintenance and so on by typing the information into an Excel cell. 

Some of our headings are a little long and spill over the cells' edges. If this happens, it's easy to increase the column width to accommodate headings. Place the cursor on the right hand edge of the grey area at the top of the column and drag the cursor to the right.

3Add a '£' sign

We're using Excel to manage our household budget so it's easier to turn the numbers into pounds. To do this, select the numbers, then click Format > Cells > Number > Currency. Use the up and down arrows to select your preferred number of decimal places then click OK.

4Add up a column of figures

Excel will do sums for you, great for adding up how much (gulp) you've spent in any given month. To do this, click in the cell where you want the total to go. Click the 'Add' icon . Excel will highlight the column of figures it thinks you want to add. 

To change this selection, place your cursor at the corner of the highlighted box, hold down the left hand mouse button and drag to highlight the numbers you want to add up. Hit Enter when you're happy with the result.

5Write a simple formula

Excel's mathematical skills aren't confined to addition. So, if you want to find out how much money you've got left to spend after subtracting your outgoings from your income, Excel's formula bar towards the top of the worksheet can help. 

Use the long, white formula bar to write a basic formula. All formulae start with an = sign. To calculate the total surplus or deficit on our spreadsheet, we created a simple formula as follows = H4 - H35 (in other words £2,000 - £2,195, clearly we need to tighten our belts).

6Group data

Grouping data allows you to hide certain rows or columns of data (if you only want to see a summary of all the bills you pay, say, rather than each individual one). 

To group data, select the row or column you want to collapse. Click Data > Group and outline > Group. Click the 'minus' sign beneath the black outline bar to hide the data. Click on the 'plus' sign to show it again.

7Add colour

Make your budget more pleasing to the eye by adding a touch of colour. 

Hold down the mouse button and move the cursor over the cells you want to colour. Click Format > Cells > Patterns and select a colour. Click OK.

8Add a border

Adding a border around parts of your spreadsheet will make the information easier to read. Select the data around which you want to add a border, then click Format > Cells > Border. Choose a style from the right hand selection. Click one of the preset borders or click within the white Border box to create a customised border.