Adulting is hard, but there are certain things that only seem difficult until you get started. One of these tasks is figuring out how to create a budget spreadsheet.<\/p>\n
Creating a budget is one of those things you know you should really do, but have probably been putting off for a while.<\/p>\n
Very few people like crunching numbers. Even fewer people like the idea of tracking every dollar they spend. But by breaking it down into simple steps, you’ll have an easier time getting your finances in order (and still have time to watch cat videos<\/a>).<\/p>\n Before you even get started, think of your motivation for doing this.<\/p>\n Are you struggling to pay off student loans? Is credit card debt constantly on your mind? Maybe you’re saving up to buy a house, or simply finding a way to get out of your parents’ basement<\/a>.<\/p>\n Whatever your motivation is, think about that. You can read all the “How to Create a Budget Spreadsheet” tutorials online, but until you address the “why,” getting started will be a challenge.<\/p>\n Everyone has a preferred toolset when it comes to staying organized. If you want to jot everything down on a notepad, go ahead.<\/p>\n If Microsoft Excel is more your speed, there are a lot of helpful tools specifically for spreadsheet creation in this platform. Google Docs also has a spreadsheet option with similar functionality.<\/p>\n There are also a number of free budget tools available online<\/a> that will tell you how to create a budget spreadsheet. Some of them even track your spending to fully automate the process.<\/p>\n Once you pick a system that works for you, it’s time to start inputting the data.<\/p>\n The first line you’ll need to include is your income. This includes your net salary (the amount you take home after taxes), and any additional income you may have from freelance or contract work.<\/p>\n If you’re setting a budget with a spouse or partner, be sure to include all streams of income from each person.<\/p>\n There are certain expenses each month that are non-negotiable. Things like your mortgage or rent, car payments, student loans, etc.<\/p>\n These should be regular payments, meaning the numbers stay the same each month.<\/p>\n Your cell phone bill, utilities, groceries, clothing, and entertainment will all fall under this umbrella.<\/p>\n These are the places you’ll find the most leeway in your budget if you find yourself overspending and needing to cut back.<\/p>\n Within your list of Additional Expenses, you’ll likely see some items take priority over others. For example, keeping the lights on and water running at home is pretty important.<\/p>\n Similarly, getting food on the table is something you need to do in order to live.<\/p>\n Your wardrobe, on the other hand, might not need a refresher for the coming season. You can probably also do without that round of drinks with your friends from work.<\/p>\n While it can be difficult to turn down invitations, these should be considered “wants,” rather than needs.<\/p>\n For the next month, keep all of your receipts and track each transaction you have.<\/p>\n This includes any meals you have during the week, that cup of coffee you got this morning, and that donation you made for the holidays.<\/p>\n Even if these are not “normal” expenditures, it all becomes a part of how to create a budget spreadsheet that is as accurate as possible.<\/p>\nHow to Create a Budget Spreadsheet You’ll Actually Use<\/h2>\n
10 Steps to Creating a Budget<\/h2>\n
1. Find the Right Software<\/h3>\n
2. List Your Income<\/h3>\n
3. Document Recurring Expenses<\/h3>\n
4. List Additional Expenses<\/h3>\n
5. Separate Needs from Wants<\/h3>\n
6. Track Expenses for 1 Month<\/h3>\n