Your Questions About How To Budget A Household With Excel

Nancy asks…

Marriage Finance Feedback Needed?

So, last year or maybe the year before, my husband asked me to take care of the household budgeting. He had a time with overdraft fees and overspending that he asked me to do. I must say I am much better at it. Immediately, I set up an excel spreadsheet which shows our income, expenses, and, money allocations week by week for several months out. He has reviewed this regularly and knows what’s going on. Now my husband was working a full time and a part time job. Even with this (and especially me being laid off and us having a toddler) things were very tight. I still budgeted his money, my unemployment, and financial aid from school very closely. He even had a weekly spending budget of $20.00. Well, he loathed going in to his second job and felt that his weekly spending money wasn’t worth it. So he quit. Um, where is his spending money supposed to come from? Also, our very modest $40.00/ week gas budget came from the second check too. Okay. Well, before he quit, I informed him that’s where his spending money came from (mind you, I didn’t get a weekly spending allowance. I’m willing to sacrifice short term without complaining) and that the gas money would have to come out of his primary paycheck (further reducing income and increasing expenses.) He quit anyway. Now in June he felt he deserved to spend $420 on fishing trip with himself and some of his friends. He felt he deserved to spend this $400 because he was working two jobs (mind you he quit in March.) I am very upset because, if he deserves to spend $400 that is not saved up or that we don’t have, what do I deserve as the mother of his child who also works part time and is going to school to advance my career and household. Is his efforts so much more deserving than mine because he leaves the house for 40 hours a weeks to work versus me staying at home with our child and studying and taking online classes for 20 hours per week (did I mention I work part time too.) I also even put it in the budget that his spending money would be reinstated in September at a weekly rate of $25.00 (because he got a raise at his part time job), we would start paying his student loans in August, and I got him cable in the home in February. I’m sorry, but this whole “I deserve” thing seems very selfish (especially spending the amount of money that he did). He forgot that he needed new shoes for work. He now wants to put new tires on the truck. Oh yeah, we do have a toddler that it would be nice to buy some things for. Yeah, my hair hasn’t been done in months. But you deserve. What are your thoughts?

One more point, he keeps comparing his $400 excursion with the fact that we are taking a roadtrip to see my family next month. Now mind you, I saved up for this (which required sacrifice and foregoing extra spending) and he gets to go along and eat, see the sights of the town, and we have to rent a larger, less efficient vehicle to accommodate him. How is this trip going to see family, possibly the same as you spending $400 to hang out with your friends. If thats the case, he has spent even more money considering a trip we have taken to see his family earlier this year.
He got a raise at his full time job.

richmama answers:

I’m hazy on what feedback you need. You married a guy who is fiscally irresponsible. There, how’s that for feedback?

Susan asks…

How do I make a regression output/equation using Excel?

I really need help with this problem! Given the data set:
marketQdPricePrice CompAdvIncome
15966117.626.5420025954880
25964537.295.0120455951755
35992016.665.9620664752955
45722588.015.320702554391
55581427.536.1620742248491

I am given a cross section of data with data on quantity of meals served (Qd), average price per meal (Pc), average price charged by competitors (Pc), local advertising budget for each market (A) and average income per household in each market (M). How do I use Excel to run the regression to get the output and then make a sample regression function using the estimated coefficients from the output?

richmama answers:

Have u install the data analysis package? U can access regression menu from there. Just plug in ur data inside, and it will generate the regression result for u.

George asks…

Moms, do you have a monthly budget and do you stick with it?

Just curious how other households work. I have a rough estimate of our budget in my head. I’ve tried several times to create an Excel Spreadsheet and do it in the computer. It works for a month or 2, but then hubs stops giving me receipts or I get side tracked. I try to keep track of the things we buy. We only write about 4 checks a month. We put all purchases on the credit card (we get 4 % cash back) then pay it off every month. So we write a check for the credit card, house payment, and car insurance (only ever 6 months).

How do you do your budget? On the computer, on paper, in your head? Do you pay cash/write checks/put it on the credit card for your every day purchases?

You don’t have to go into too much detail. Here’s our budget:
Mortgage: $1300.00
Gas: $ 90.00
Cable/internet/Phone $100.00
Groceries/shopping $600.00 (includes food,diapers, cleaning stuff)
Food (out to eat) $ 40.00
Clothing $ 15.00
Prescriptions/doctor $ 10.00
Church(Donation) $150.00
Misc. $ 50.00

richmama answers:

We have bills monthly that stay the same (with the exception of our utilities). We try to stay as flexible as possible. Our monthly “budget” is as follows:

Mortgage- $730 (very good price for our home)
Gas- $50 (my husband’s fuel is paid for by work)
Cable/Internet/Utilities- varies from $170-$270
Car Insurance- $90
Phone- $120
Groceries- $300-400 a month (food, toiletries, etc)
Church Tithing- 10% of my husband’s check is that week
Miscellaneous (clothes, entertainment, etc)- $50-75
Health Insurance- $500 a month (paid for mostly by my husband’s employer)
Life Insurance- $60 every quarter
Retirement- $100 a month

The economy has made us stop a lot of unnecessary spending though, so that’s why our “fun” budget is so low. But that’s OK with us. We find things to do that are practically free.

-edit-
To the poster below me- As long as the kids’ needs are being met, then it’s not your place to lecture them on their giving to the church.

I don’t feel it’s right of you to say a word to them on their spending without knowing all the facts.

Steven asks…

How do I make a regression output/equation using Excel?

I really need help with this problem! Given the data set:
market Qd Price Price Comp Adv Income
1 596611 7.62 6.54 200259 54880
2 596453 7.29 5.01 204559 51755
3 599201 6.66 5.96 206647 52955
4 572258 8.01 5.3 207025 54391
5 558142 7.53 6.16 207422 48491

I am given a cross section of data with data on quantity of meals served (Qd), average price per meal (Pc), average price charged by competitors (Pc), local advertising budget for each market (A) and average income per household in each market (M). How do I use Excel to run the regression to get the output and then make a sample regression function using the estimated coefficients from the output? I know to use data analysis -> regression but don’t understand what to put into it to get the correct answer

richmama answers:

You want to regress Qd on the next 4 columns.

Get your dataset into cells a1.f5

Highlight a1.f5 and click on regression.
The y-range is b1.b5
The x-range is c1.f5
I prefer to put the output in another tab. It will contain a table with a column of coefficients.

Coefficients
1463296.78
-26980.54749
-10355.2911
-3.737646016
2.826655421

This defines your regression equation.

Qd = 1463296.78 -26980.54749 * price -10355.2911 * Pc -3.737646016 * A + 2.826655421 * M

In the top of the regression output you see a value for R-Squared = 1. That indicates that it is a perfect fit. I.e. The variables explain 100% of the dependent variable Qd.

Hope that helps.

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