How to make a budget spreadsheet

 It lets you see exactly where your money comes in and goes out in one convenient spot.

Plenty of tools exist to help you track expenses and income in a spreadsheet format. Two of the most common options include Microsoft Excel and Google Sheets, both of which let you customize your categories, create formulas, and even turn your numbers into visuals like graphs or charts.

Thanks to free templates online, you don’t have to start from scratch. You can search for templates within Excel and Google Sheets, or you can create something on design sites like Canva. 

Some people use budgeting spreadsheets alongside savings tools to separate day-to-day spending from longer-term goals.

Before compiling your numbers, explore both Excel and Google Sheets to see which you like best. 

You can sign up for a free, web-based version of Excel or you can purchase Microsoft365 for download onto your computer. The free version may limit you a bit, especially if you’re into more advanced formulas. And if your internet goes down, you won’t have access to your budget spreadsheet unless you downloaded it to your computer or set it up for offline access. Meanwhile, the paid version gives you more features and access, but there is a fee associated with it and it’s a good idea to create a backup file in case of a computer issue.

Google Sheets is web-based, but it does allow for offline mode to work on your spreadsheet even without an internet connection. It is also free and allows collaboration with other people in real-time — say, a partner or spouse. That can also mean accidental data deletion if two people are working on the same sheet at once. 

If you need more advanced formula options, you’ll want to go with the paid version of Excel. For a basic monthly budget spreadsheet, either Excel or Google Sheets work well.

Once you’ve chosen a tool, using it consistently can help keep your budgeting process simple.

Now, you’ll want to gather up your financial data, like your income and your partner’s income. Don’t forget to include any money coming in from a part-time job and any other supplemental income, too. 

You’ll also need to gather information on fixed and variable expenses. Fixed expense categories are recurring expenses and might include rent or mortgage, car loan, student loan, gas and transportation, or insurance. Variable expense categories can include must-haves like household supplies and groceries, but you could also budget for things you enjoy, like going out to eat.

Finally, include any savings goals you have in your expense category. That might be contributing to your retirement account, or perhaps it’s saving up for a wedding or other big event.

Creating a monthly budget spreadsheet is pretty common, but it’s not the only option.  You can track your budget on a weekly, monthly, or annual basis, depending on what makes sense for your finances.

1. Set up your workbook & sheets: Create a new spreadsheet and set it up according to your chosen timeframe. For instance, if you’re going with a monthly option, you may want to create a new sheet or tab within your workbook for each of the 12 months of the year. 
2. List your income sources: Enter all of your income sources under your income category, including your own, your partner’s, and any money from running a business. 
3. List your expense categories: List the fixed and variable expense categories you identified earlier, like rent, gas, savings goals, and groceries.
4. Add budgeted and actual columns: Enter your projected budget numbers for each category, then create a column so you can record what you actually spent each month. This lets you see at a glance if your projected budget was accurate or if it needs some tweaking.
5. Use formulas to automate totals: Auto-sum is a handy formula to add numbers in a row or column. Try it out to automatically calculate a running total of income and expenses, for example.
6. Add visuals & conditional formatting: Use conditional formatting so your spreadsheet columns turn a bright color in any areas where you’ve gone over (or under!) budget. It’s a quick way to flag anything out of range. You can also create a pie chart to quickly see which categories you’re spending the most money on. 
7. Review, update & maintain your budget: Whether you’ve chosen weekly or monthly budgeting, be sure to regularly update your numbers and keep on top of how your budget is doing.

• Keep it simple at first to avoid overwhelm — you can always add more data or formulas later.

• Create categories that match your financial habits.

• Update weekly or monthly.

• Adjust categories or your budget as needed.

• Use formulas and templates to streamline and automate when possible.

• Back up your spreadsheet in case of technology issues.

• Lock formulas to avoid accidental changes.

• Use actual income and expenses, not hypothetical numbers.

• Forgetting to include all income sources.

• Underestimating variable expenses, like groceries or household needs.

• Neglecting to review your budget once you set it up.

• Not customizing templates for your needs.

• Not including both “Actual” and “Budget” columns for the most useful insights.

Creating a budget spreadsheet doesn’t have to be complicated or expensive, thanks to plenty of software options and templates. Explore what tool works best for you, gather your financial info, and choose how often you’ll track your budget. Then check in and update your spreadsheet regularly to stay on track with your financial goals. 

A budgeting spreadsheet is often used alongside savings tools to help distinguish between day-to-day spending and longer-term financial priorities.

The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.