How to Manage Bill Amounts

Part of the Video Series How to Set a Budget

Viewing videos requires the latest version of Adobe's Flash Player.
Get the latest Flash player.

Calculating a budget minus Paid Difference and Amount Owed for Bills in this free series of personal finance video from our professional Certified Public Accountant (CPA).

Rating:
Views: 460
Comments: 0 (comment now)

Favorited: 0 | Add to Favorites

Tags: budget, expenses, personal, personal finance
Bookmark at:

All Videos in the Series, How to Set a Budget

Member Comments

Video Transcript

How to Manage Bill Amounts
Now I'm going to talk about budget minus paid and the difference in the amount owed and why we have these columns. The budget minus paid is the difference between the budget amount and the amount paid. If it is a positive amount that tells us that we did not pay as much as we thought, so that is a good situation. Then we have the same formula. If you note here the formula for this is =F6-E6 so budget minus amount paid equals in this case $21.53. The same formula is used all the way down through this column. So where I have to estimate some of the more variable expenses, you can see that I have pluses and minus and it totals up to $69.04. I also like to include the amount owed and this is useful when you are trying to pay off credit cards or department store bills where you have interest. This can let you know because we would look at the interest percent. We would track that with each credit card. That will help us to pay off the higher credit cards first. In this case once we have worked through this, you would see that is the case. The total owed is $236,024.81 which most of it is his house. So that is pretty much what you would expect.

About the Expert

Expert: Tom Noah has been a Certified Public Accountant (CPA) for more than 27 years. In that time he has held positions at several companies as an accountant and as a director of financial planning. Read More