Creating a personal budget is one of the best ways to take control of your money. While there are many apps available, spreadsheets remain one of the most powerful, flexible, and customizable tools for budgeting. The best part? You don’t need to be an Excel wizard to make it work.
In this guide, you’ll learn how to create a personal budget using Google Sheets or Excel — even if you’ve never used a spreadsheet before.
Why Use a Spreadsheet to Budget?
Spreadsheets give you full control over your finances. Unlike apps that may have limits or hide calculations, a spreadsheet is 100% transparent.
Benefits:
- Fully customizable to your income, expenses, and goals
- Easy to visualize trends with charts
- Great for both beginners and advanced users
- Free to use (Google Sheets is cloud-based and free)
Step 1: Open a New Spreadsheet
Use either:
- Google Sheets (free and cloud-based)
- Microsoft Excel (installed on your computer)
Start with a blank sheet. You can name it something like “Monthly Budget”.
Step 2: Create Budget Categories
Divide your budget into the following sections:
Income
- Salary (net)
- Side income
- Freelance work
- Other income
Fixed Expenses (same every month)
- Rent/mortgage
- Utilities
- Insurance
- Loan payments
- Subscriptions
Variable Expenses (change monthly)
- Groceries
- Gas/transportation
- Dining out
- Shopping
- Entertainment
Savings and Debt Repayment
- Emergency fund
- Retirement
- Credit card or loan extra payments
Create separate columns for each category.
Step 3: Add Your Income
In a row at the top, label it “Income” and list all sources of income for the month.
Example:
| Income Source | Amount |
|---|---|
| Salary | $2,500 |
| Freelance Work | $300 |
| Total Income | $2,800 |
Use a SUM formula to calculate your total income:=SUM(B2:B3)
Step 4: List All Expenses
Below your income section, list all expenses — fixed first, then variable. Include a column for:
- Budgeted amount
- Actual amount spent
- Difference (Actual – Budgeted)
Example:
| Category | Budgeted | Actual | Difference |
|---|---|---|---|
| Rent | $900 | $900 | $0 |
| Groceries | $300 | $340 | -$40 |
| Dining Out | $150 | $120 | +$30 |
This helps you compare plan vs. reality — a key to improving over time.
Step 5: Use Formulas to Track Totals
Add totals at the bottom of each section using =SUM(...). Then calculate:
- Total Expenses = SUM of all expense amounts
- Total Savings = Income – Expenses
- Savings Rate (%) = (Savings ÷ Income) × 100
This shows you how much money you’re keeping versus spending.
Step 6: Create a Dashboard (Optional but Helpful)
You can add charts or colored highlights to visualize:
- Spending by category
- Monthly trends
- Over-budget alerts
Use conditional formatting to highlight overspending (e.g., red cell if you exceed the budget).
Step 7: Save and Update Weekly
Budgeting isn’t a one-time task — it’s a habit. Check in weekly to:
- Record new spending
- Compare against your budget
- Adjust if needed
This helps you stay on track and catch overspending early.
Bonus Tip: Use a Budget Template
Not sure how to start? Use a free template:
- Google Sheets has built-in templates (File > New > From template gallery)
- Websites like Vertex42 and Tiller offer free downloads
Just plug in your numbers and customize as needed.
Final Thoughts: Spreadsheets Make Budgeting Simple and Powerful
Creating a budget doesn’t have to be complicated. A simple spreadsheet can reveal exactly where your money is going and help you make better decisions.
Start with one month. Track honestly. Adjust along the way.
Soon, you’ll feel more confident, less stressed — and way more in control of your money.
In God We Trust