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In this tutorial, Excel custom formatting tips are shared to help avoid common spreadsheet mistakes and save time. The key is to remember a simple rule for custom formatting, which will be explained after demonstrating its power with sample data on compensation. By using the format cells option or shortcut key, CTRL 1, users can easily add 1,000 separators and adjust decimal places. Additionally, there is the option to customize how negative numbers are displayed. These tips can simplify the process of formatting data in Excel efficiently.