How To Make a Budget Spreadsheet in Google Sheets

Did you know that 56% of Americans have no idea how much they spent last month?

Financial management doesn’t have to be a guessing game. A simple budget spreadsheet in Google Sheets can help you track your income, expenses, and savings. It can help you break free from paycheck-to-paycheck living and save more.

The best part? You don’t need any software or accounting skills. Google Sheets has everything you need to get started for free. If you want a ready-made, professional budget template, check out our Monthly Budget Template. It is 100% customizeable.

But if you prefer to create your own from scratch, follow this step-by-step guide.

Step 1: Open Google Sheets and Start a New Spreadsheet

Go to Google Sheets and log in to your Google account. Click on Blank spreadsheet to start a new Google Sheet. Alternatively, go to File > New > From template gallery to browse Google’s pre-made budget templates. But while Google’s templates are a great starting point, building your budget from scratch gives you full control over customization.

Step 2: Set Up Your Budget Categories

A budget spreadsheet is only useful if it’s organized. Start by defining your income and expense categories. Here are some common budget categories:

Income:

• Salary/Wages

• Side Hustles

• Investments

• Freelance Work

• Passive Income

Expenses:

• Rent/Mortgage

• Utilities (Electricity, Water, Internet)

• Groceries

• Transportation

• Insurance

• Savings & Investments

• Entertainment

Tip: Keeping your categories simple but comprehensive will help you track spending without getting overwhelmed.

Step 3: Design the Budget Spreadsheet Layout

After setting the categories, you can start structuring the spreadsheet. Here are some columns you may include in your budget spreadsheet:

• Budgeted Amount: The amount you plan to spend.

• Actual Amount: What you actually spent.

• Difference: Helps track overspending or savings.

• Notes: Useful for tracking unexpected costs or justifications.

Want a pre-designed budget layout? Our Google Sheets Budget Template saves you hours of setup and includes automated calculations.

Step 4: Add Formulas to Automate Calculations

Automation is the beauty of Google Sheets. Instead of calculating everything manually, use Google Sheets formulas. Google Sheets has several formulas for making all kinds of calculations.

1. Calculate total income & expenses.

In the income section, sum all your earnings (budgeted and actual) using the SUM function. For example:

=SUM(B3:B4)

Do the same for expenses:

=SUM(B7:B11)

2. Track budget variance.

Now, let's see if you successfully stayed within your budget. To calculate the difference between budgeted and actual spending, use:

=C2-B2

3. Apply Conditional formatting.

Conditional formatting lets you highlight where you need to cut expenses at a glance. It also makes your monthly budget template visually appealing:

• Select the range and go to Format > Conditional formatting
• Under Format cells if, select Less than. In the field, enter 0 (this applies to all negative numbers). Click on the Fill color icon and choose red. Select Done.
• Click + Add another rule. Under Format cells if, select Greater than or equal to. In the field, enter 0 (this applies to all positive numbers). Click on the Fill color icon and choose green. Select Done. 
• 

Result:

Step 5: Add Charts for a Visual Breakdown

While numbers are great, visuals can help make sense of spending habits. Here is how to insert a pie chart in Google Sheets:

1. Highlight your expense categories and amounts.

2. Click Insert > Chart.

3. In the Chart Editor, choose Pie Chart for an expense breakdown.

4. Adjust colors and labels to make it more readable.

A monthly spending trend chart (line graph) can also show spending habits over time.

Step 6: Keep Your Budget Updated

You need to consistently update your budget data to keep it effective. Here are some ways to ensure your budget stays updated:

• Update weekly: Add expenses as you go to avoid forgetting transactions.

• Review monthly: Compare budgeted vs. actual spending and adjust as needed.

• Set goals: If you’re overspending, tweak categories for the next month.

Advanced Budgeting Tips for Google Sheets

After mastering the basics, you can think of ways to take your budget spreadsheet to the next level. Here are some advanced features that help automate tracking and improve accuracy:

• Link bank transactions (via Google Sheets API or third-party tools like Tiller Money).

• Use dropdown lists for easy data entry (Data > Data validation).

• Share with family or roommates for collaborative budgeting.

Final Thoughts

A monthly budget spreadsheet helps you achieve your financial goals like a boss. You can easily manage monthly income and expenses with proper setup, formulas, and visual tracking. However, manually setting up a budget takes time. Grab our Monthly Budget Template today if you want a fully customizable, professional budget spreadsheet with pre-set formulas!

For more easy-to-follow Excel guides and the latest Excel Templates, visit Simple Sheets and the related articles section of this blog post.

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Frequently Asked Questions (FAQ)

Can I use Google Sheets for budgeting on my phone?

Yes! Google Sheets is mobile-friendly, and you can update your budget using the Google Sheets app on both Android and iOS devices.

How do I make my budget spreadsheet more automated?

Use formulas like SUM to calculate totals automatically and IF statements to flag overspending. You can also set up conditional formatting to highlight key financial trends at a glance.

What’s the advantage of using a pre-made budget template?

A pre-made template saves time by including built-in formulas, formatting, and expense categories. Our Monthly Budget Template simplifies budgeting with automatic calculations!

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