How to Make a Budget in Google Sheets (Step-by-Step)

Here are straightforward instructions for creating a cost-effective budget using Google Sheets in under 30 minutes. Develop a strategy for managing your expenses and increasing your savings.

Numerous tools are available for budgeting, bank account tracking, and setting savings objectives. However, instead of delving into intricate financial management software, it may be more beneficial to start by creating a budget using Google Sheets.

In less than an hour, you can fashion your own customized budget template using Google Sheets, allowing you to gain a deeper understanding of your finances and your personal money mindset.

How to Make a Budget in Google Sheets?

Step 1: Access Google Sheets

Navigate to your Google Drive account. From the left sidebar, select “New” and then choose “Google Sheet.”

 

Step 2: Generate Income and Expense Categories

Categories serve as the foundation of a budget. There is no definitive number of categories that is considered “correct.” Nevertheless, aim to have a sufficient number of categories to encompass all your income and expenses without introducing unnecessary complexity.

Step 3: Determine the Preferred Budget Duration

Choosing the appropriate budget period involves considering factors such as:

• Frequency of income
• Desired level of financial monitoring
• Time commitment for updating the budget spreadsheet

You can opt for daily, weekly, bi-weekly, monthly, or yearly budget periods. It is also possible to utilize multiple periods concurrently. Many budgeting apps and software typically operate on a monthly basis, extrapolating the budget to cover an entire year.

Irrespective of the chosen period, it is essential to create three columns:

• A column for budgeted income and expenses
• A column for actual income and expenses
• A column displaying the variance between the two, providing a comprehensive overview of your progress.

Step 4: Employ Straightforward Formulas to Reduce Time Investment

Performing manual calculations by adding up cells can be time-consuming, but Google Sheets simplifies the process with formulas.

To determine the variance between your budgeted and actual income and expenses, you can subtract the cell containing the “actual” amount from the cell containing the “budget” amount.

Additionally, you can use the SUM formula to vertically add up all your income and expense categories.

Step 5: Enter Your Budget Figures

Building a budget involves establishing financial objectives. Your income serves as a definite boundary for your permissible expenses. However, within the limits of your income, you have the flexibility to determine how you allocate your funds.

Your past financial records provide valuable insights for creating your budget. Review your recent bank statements from the past few months to understand your actual spending patterns and where your money is being allocated.

Step 6: Maintain and Update Your Budget

As your selected budget period progresses, it is crucial to regularly update your budget spreadsheet with all your actual transactions. This practice enables you to monitor your progress effectively.

Occasionally, you may need to make adjustments to your budget to accommodate unexpected expenses or unplanned income. Budgeting entails being aware of the inflow and outflow of your money.

It is normal for there to be variations between your budgeted and actual income and expenses. The more you utilize your budget, the more accurate it will become.

Constructing a budget from scratch does not have to be daunting. You do not require a complex spreadsheet with advanced formulas to conduct a comprehensive financial evaluation.

However, if you are comfortable with spreadsheets, you may consider incorporating additional features to enhance the information and visual appeal of your budget spreadsheet.

Utilize Conditional Formatting

Utilizing conditional formatting allows for a visual comparison between your budgeted and actual expenses.

1. Right-click on the desired cell and select “Conditional Formatting.”
2. Set the condition.
3. Choose the desired outcome when the condition is met.

Now, instead of scrutinizing your budget numbers individually, you can swiftly identify categories that are either exceeding or falling short of the budgeted amounts.

Utilize Charts and Graphs

Charts and graphs provide an excellent means to visualize spending trends. To incorporate charts and graphs into your budget spreadsheet:

1. Access the menu bar and select “Insert” followed by “Chart.”
2. A sidebar will appear on the right side of your screen, enabling you to customize:
   • The data included in your chart
   • The type of chart or graph
   • Various characteristics and attributes of the chart or graph

Conclusion