DIY Budgeting: How to Create Your Own Budgeting Spreadsheet That’s Easy on Your Wallet and Your Brain Cells
Budgeting. Just the word alone can strike fear into the hearts of even the bravest of us. But let’s face it, keeping track of our finances is crucial if we want to avoid living on ramen noodles and tap water for the rest of our lives.
Fortunately, creating your own budgeting spreadsheet doesn’t have to be rocket science. In fact, with just a few simple steps and a little bit of elbow grease, you can have your very own personalized budgeting tool up and running in no time.
Here’s what you’ll need:
- A computer with a spreadsheet program (Excel, Google Sheets, etc.)
- A clear understanding of your monthly income and expenses
- A dash of creativity (optional, but recommended)
Budgeting. Just the word alone can strike fear into the hearts of even the bravest of us. But let’s face it, keeping track of our finances is crucial if we want to avoid living on ramen noodles and tap water for the rest of our lives.
Fortunately, creating your own budgeting spreadsheet doesn’t have to be rocket science. In fact, with just a few simple steps and a little bit of elbow grease, you can have your very own personalized budgeting tool up and running in no time.
Here’s what you’ll need:
- A computer with a spreadsheet program (Excel, Google Sheets, etc.)
- A clear understanding of your monthly income and expenses
- A dash of creativity (optional, but recommended)
Step 1: Make a List of Your Monthly Income and Expenses
The first step to creating a budgeting spreadsheet is to get a handle on your monthly cash flow. Make a list of all your sources of income, including your salary, any side hustles, and any other sources of income.
Next, make a list of all your monthly expenses. This should include everything from rent or mortgage payments, utilities, transportation costs, food, entertainment, and any other regular expenses.
Step 2: Set Up Your Spreadsheet
Once you have a clear understanding of your monthly cash flow, it’s time to set up your spreadsheet. Open up your spreadsheet program and create a new spreadsheet.
Label the first column “Expense” and the second column “Amount”. In the “Expense” column, list all your monthly expenses. In the “Amount” column, enter the corresponding amount for each expense.
Step 3: Get Creative
This is the fun part! Now that you have your basic spreadsheet set up, it’s time to get creative. You can add formulas to automatically calculate your total monthly income, expenses, and remaining balance.
You can also add charts and graphs to visually track your spending patterns. Want to get really fancy? Try adding conditional formatting to highlight expenses that are over budget.
Step 4: Keep it Updated
The key to a successful budgeting spreadsheet is keeping it updated. Make it a habit to update your spreadsheet on a regular basis, such as at the end of each month. This will help you stay on top of your finances and make adjustments as needed.
Here's a sample budgeting spreadsheet in Google Sheets format:
- Create a new Google Sheet and label the first row with the following column headers: "Expense", "Amount", "Payment Method", "Due Date", and "Category".
- In the "Expense" column, list all your monthly expenses.
- In the "Amount" column, enter the corresponding amount for each expense.
- In the "Payment Method" column, enter whether the expense is paid by manual payment or direct debit.
- In the "Due Date" column, enter the date the expense is due.
- In the "Category" column, categorize each expense (e.g. housing, transportation, food, entertainment, etc.).
- In the next row, create the following labels in separate cells: "Income", "Total Expenses", "Total Direct Debits", "Total Manual Payments", "Disposable Income".
- In the cell next to "Income", enter your total monthly income.
- In the cell next to "Total Expenses", enter the following formula: =SUM(B2:B) (This will sum up all the expenses in the "Amount" column starting from row 2).
- In the cell next to "Total Direct Debits", enter the following formula: =SUMIF(C2:C,"Direct Debit",B2:B) (This will sum up all the expenses in the "Amount" column that are paid by direct debit).
- In the cell next to "Total Manual Payments", enter the following formula: =SUMIF(C2:C,"Manual Payment",B2:B) (This will sum up all the expenses in the "Amount" column that are paid by manual payment).
- In the cell next to "Disposable Income", enter the following formula: =A2-D2 (This will calculate your disposable income by subtracting your total expenses from your total income).
Here's a sample of what your budgeting spreadsheet might look like:
Expense | Amount | Payment Method | Due Date | Category |
Rent | 1000 | Direct Debit | 1st | Housing |
Utilities | 200 | Direct Debit | 15th | Housing |
Transportation | 150 | Manual Payment | 20th | Transport |
Food | 400 | Manual Payment | 25th | Food |
Entertainment | 50 | Manual Payment | 30th | Fun |
Income | 2500 | |||
Total Expenses | 2000 | |||
Total Direct | 1200 | |||
Total Manual | 800 | |||
Disposable | 500 |
Note: This is just an example and you can customize your spreadsheet to meet your specific needs.
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