Welcome to Excel and video number one.
Hey, if you want to download this workbook and follow along,
click on my YouTube channel, then click on my college
website link, and you can download the workbook,
Finance in Excel, Chapter 00.
Yes, this is chapter 0, and will go all the way
to chapter 11 and perhaps beyond a basic finance class.
Mostly covering corporate finance,
but lots of cool personal finance examples also.
This first chapter-- and there'll
be six videos just covering the basics of Excel and math.
And then we'll move on to talking about finance.
All right, in this first video, we're
going to talk about-- this is just
a list of topics for chapter 0.
Six videos.
Here's our first topic.
Just for those of us who are in this class who have never
used Excel before, we got to talk about what is Excel.
Excel basically does two things.
Calculations, which is actually what
we're going to do mostly in this class.
Things like adding a column total
or calculating a monthly loan payment.
Or adding some numbers, finding the minimum
amongst some interest rates, or even doing a subtraction.
Calculations.
Data analysis.
That's where you look at raw data, organize it in some way,
and come to some conclusion.
A very simple example would be, hey, here's some interest
rates.
And this is just a few, but perhaps-- maybe we
had 20 of them.
And we wanted to find the lowest one because we want the lowest
interest rates.
So we'd find the min.
That would involve doing a calculation,
and the data analysis part means taking raw data,
finding the min, and saying, hey,
I'm going to choose that loan.
Excel also stores raw data.
We don't get to do a lot of that in this class.
We're mostly about finance and calculations.
All right, what is Excel?
What happens in Excel?
Excel is a two-way grid.
A, B, C-- those are the column headers.
D, E, F. Row headers over here--
2, 3, 4.
The intersection of a column and a row is a cell.
Now, some people think, oh, so I know that.
But that is really the heart of Excel,
because what we do often-- and as we'll
see everyday in this class-- is we make formulas
based on cell references.
And we'll see that in just a moment.
Column C, row 2.
This is C2.
So we have columns and rows.
This is a cell.
Now, a range of cell-- we'll see just a moment
when we do a calculation.
You can have a bunch of cells together.
So this would be E5 to G5.
Range of cells.
What about all the cells?
That's called a worksheet.
You could see this is a sheet tab here,
and it has the word Excel.
If you double click it, you could actually type and hit
Enter.
Put whatever name you want there.
I'm going to click Escape.
Ah, but that's just one sheet.
That is a worksheet.
This is the sheet tab.
All of the cells make up a worksheet.
Now, we are going to have many worksheets
in each one of our workbooks.
Now, one way to get to the different sheets
is by clicking.
And you can also you move this.
It doesn't move the active--
these little scroll arrows do not move the active sheet.
You can see I still have selected that second sheet
there.
But it moves the view of the sheets.
Perhaps the best way to move through all the worksheets,
since we're going to have--
in most of our workbooks for any one given chapter,
we're going to have 10, 20, 30 worksheets.
The best way is to use the keyboard shortcut
Control-Page Down and Up.
So I'm on this sheet.
I'm going to use Control-Page Down to move
to the next one, and then the next one, and the next one.
You could see this one says Formula Elements.
Control-Page Down, Math Symbols.
Now I'm going to do Control-Page Up.
Formula Elements.
I'm moving to the left now.
Function, Formula, Excel.
OK, so that's navigating through all the sheets.
All of the sheets together make the workbook.
The name of this workbook or file is Finance&ExcelCha
pter00ExcelWorkbook.xlsx.
That's a file extension for Excel 2007.
And in this class, we're going to be using 2007 or 2010.
Almost all the calculations we make, there's no difference.
Some of the things, like the file backstage
menu I have here in Excel 2010, is slightly different in 2007.
It actually is a round orb.
All right, so all of the worksheets
make up the workbook, which is the file.
Now we want to look at ribbons.
Now, I'm going to always had my ribbons--
or most of the times have my ribbons--
not showing because I'm trying to shoot a video,
and conserve space.
But you can right click and then Unminimize,
or right click Minimize.
Now, Control-F1 is the keyboard shortcut to toggle,
but I can't use that because it will turn off
my video recorder.
So I'm going to right click on Minimize.
This is called the Home ribbon.
Now, your Home ribbon may look different.
I have my screen here very small,
so everything's scrunched up.
And so you can hardly see anything.
The number right here.
If I pull on this edge right here and drag it out,
you can see-- that's probably what you see.
You see the Number group, the Alignment group,
the Font group, the clipboard.
We'll be using this a lot in this class.
This is number formatting.
Actually, we'll probably use the keyboard shortcut
to get to Format Cells.
These are ribbons.
The Home ribbon has the most common items.
If you'll look over here, things like Insert Function, which
we probably will never use.
We will do more efficient ways in the sheets.
Sorting.
So there's some things in the Home ribbon
we'll be using in this class, because this is a finance class
where we do mostly calculating.
There there's an Insert.
In some of the other classes I teach, like statistics, we
do lots of charts.
Not in this class.
Page Layout.
Perhaps we'll do it when we do an amortization table.
And we may use the Formula ribbon also.
Those are ribbons.
So for example, you could type the word finance.
Take your cursor--
I typed and hit Enter.
Notice the cursor jumped down and selected the cell below.
But if I take my mouse and click with that white, thick cursor--
boop, just like that--
I can do something like, say, change the fill color.
Now, if I use a dark fill color, then I
have to use a light font color.
All right, so those are some buttons we'll be using.
Some of these.
But again, we're doing mostly calculating.
So we're going to be staying in the cells,
making formulas, and typing in raw data and stuff like that.
Another thing.
This is called the Quick Access Toolbar, or QAT.
Now, this might be handy for this class
because something like changing the decimals,
we will be doing this all the time.
We're going to be dealing with interest rates
with 15 decimals, and we don't want to see all the decimals.
So one, hears the QAT.
There's not much on it when you open up a save.
Our best friend, Undo and Redo.
By the way, Undo.
What does it do?
When I click Undo, it undoes the last action.
And then Redo undoes the Undo.
So there's some items there.
Now, some people like it up here,
which I do because I like to conserve space.
But you can right click and say Show Below the Ribbon, just
like that.
I'm going to right click and show
above because that conserves space.
The other great thing is if we decrease decimals a lot,
you find something you want in the ribbon, right click
and say Add to Quick Access Toolbar.
Unbelievable.
Anything you find here that you like--
you may be using Name Manager all the time--
all you gotta do is right click, and you can add it
to the Quick Access Toolbar.
Now, a couple more things about how Excel is set up,
and basic scroll bars.
We will be using scroll bars because some of the sheets
will be big.
Some of our amortization tables will be huge.
So when we scroll down, I'm clicking
on this little scroll arrow.
Or you can drag the scroll box.
That's the vertical-- whoops.
Now, I was doing that off the screen the whole time?
Here's the scroll arrow and the scroll box.
And then this is the horizontal.
A lot of times we'll have very large sheets.
Even as we go forward here, we'll
have lots of stuff listed vertically.
Now, I'm going to right click Minimize.
So we looked at all of that.
Formulas and functions.
We have a couple of videos coming up specifically on that.
But let's just look at a couple basic formulas.
Let's start right here.
Now, in order to do a formula--
our goal is to take 100 minus 85--
you've got to know how to tell Excel
that what you're putting in the cell here is a formula.
If we type a word, Excel doesn't think that's a formula,
and it knows that it's a word.
But if you type an equal sign as the first character
in the cell, boom.
You just told Excel I'm doing a formula.
Now, we want 100 minus 85.
And the way you do this in Excel is you
put your formula inputs in the cell.
So this is in F9.
This is in G9.
And the formula is in H9.
So you take your cursor and you can click on the F9,
and it puts it in for you.
You type of minus sign, and it's better to use the number pad--
or it's convenient to use the number pad, often--
and then click on G9.
When you hit Enter, it tells you your answer.
Now, why do we make formulas?
Up here, this is called the formula bar,
and you can see the formula.
It's great because you can see that calculated answer
on the surface of the spreadsheet,
but up here you can see your formula.
This is called the name box.
That's because the cell selected is H9.
Now, what is beautiful about Excel?
Why was a spreadsheet invented?
Because formula inputs are here, and you simply change them.
75, and when you hit Enter, boom.
Your formula updates.
Amazingly convenient.
If you didn't have a spreadsheet-- and in fact,
the guys who invented it, Bricklin and Frankston,
their idea was put formula inputs into cells.
Create a formula, and you never have
to retype all of your formula inputs into your calculator.
Because if we had to redo this, 100 minus 75,
we'd have to type it in before spreadsheets.
All right, this is a formula, you can see up here.
Equal sign, there's a cell reference, and a math operator,
or minus sign.
Another type of formula is when you use a built-in function,
like adding.
So adding.
You can come up to the Home.
And this is called the Sigma, or the Sum button.
But you're going to click your dropdown,
and there's some functions.
Sum.
Now, we're probably never going to use
any of the ribbon ways of putting
in formulas because, for this finance class,
we're going to use the same type of functions over and over,
and it's faster to type them in.
But let's just see how this works this first time.
I'm going to click on the Sum there.
And what did it do?
It put an equal-- remember, equal sign
as the first character which says, I'm doing a formula.
Sum.
That is the name for the built-in function.
And there's a cell range, E5 to G5, with a colon in between.
That means from the bookend E5 all the way to G5.
Please add all those up.
All right, I'm going to click Escape to get rid of that.
Because in this class, we will be using the Sum function,
just like basically all other professions use the Sum
function more than any other function.
And there's a keyboard shortcut for the Sum function.
It's Alt plus Equals.
Now, what that means is you hold the Alt key
and then tap Equals so Alt-Equals.
And after the 11 or 12 weeks of this class,
you will just do that automatically.
You will never take your mouse and come up to wherever,
either the Home or the Formula.
You'll just do Alt-Equals.
Now, one thing about the Sum function and other functions,
like Average, that we use.
It's guessing.
Notice the dancing ants are marching around
and dancing around that range.
Sometimes it guesses right, sometimes it guesses wrong,
so you always want to check it.
If it's right, then simply hit Enter.
Another example of a calculation would be
find the smallest or minimum.
Now this is a function we'll get to use
a lot on this class we're going to type an equal sign, and then
type MI, and look at that.
There's a dropdown that appears.
And we can either select it or type in.
And as soon as it's highlighted in bold,
we can hit the Tab key.
And then you take your cursor and click and drag.
So the min is 0.012.
Actually, whoever type these in--
I can't imagine who typed this in-- typed them in incorrectly.
This should actually be 0.12.
0.12, if you format it as a percent, it'd be 12%.
And this one should be 0.15.
So we type we made a mistake on our data entry.
We made our formula.
But it was easy to fix.
Now the min, the minimum number, the smallest number, is 0.09.
That's an example of a calculation.
You can see up your equal sign function min.
That's called an argument there.
And a cell range.
That formula is a calculation.
The data analysis part is taking raw data, organizing it.
In this case, we just took out the min.
And then we go ahead and select that loan as our choice.
All right, that is just a brief introduction.
We're going to talk about formulas and functions and cell
references and number formatting and a bunch of other things
in videos coming up.
Our next video, we'll talk more about formulas and functions.
All right, see you next video.