![]() Your historical financial data is a great jumping-off point for creating your budget. However, within the parameters of your income, you can decide how to spend your money. ![]() Your income puts a hard limit on your allowable expenses. 5: Input your budget numbersĬreating a budget is nothing more than setting financial goals. You can also vertically sum all of your income and expense categories by using the SUM formula. You can figure the difference between your budgeted and actual income and expenses by subtracting the cell containing the “actual” amount from the cell containing the “budget” amount. Manually summing cells is time-consuming, but Google Sheets and Excel makes it easy with formulas. A column showing the difference between the two, so you can see a complete picture of your progressĤ: Use simple formulas to minimize your time commitment.A column for actual income and expenses.A column for your budgeted income and expenses.Regardless of the budget period, you’ll want to create three columns: They then extrapolate the budget out to a year. In fact, most budget apps and software track income and expenses by month. ![]() You can also use multiple budget periods simultaneously. How much time you want to spend updating your budget spreadsheet.How closely you want to monitor your finances.You may want to budget daily, weekly, bi-weekly, monthly, or yearly. This is especially helpful if you’re trying to reduce your expenses in a specific area of your finances. If you find that specificity helps you maintain better control of your finances, you may want to add subcategories to more closely track certain expenses. Debt Payments – Car payments, student loans, etc.Savings – This can include emergency funds, retirement savings, etc.Transfers – credit card payments, automated savings, etc.Expenses – These will be most of your categories.Income – You may track some or all income, depending on your goals.Within your categories, it’s helpful to track your: You only need enough categories to encompass all your income and expenses without creating unnecessary complexity. Some people budget with as few as three categories – or even one! While there isn’t a “right” number of categories, at Tiller, we suggest keeping your categories simple. To help get you started, here’s a list of 20 suggested budget categories. That’s why every budget should begin with choosing your categories, regardless of your preferred budgeting method. Or open a new workbook in Excel: 2: Choose your budget categoriesīudget categories are essential for tracking your expenses and income over time. ![]() On the left sidebar, click “New” and “Google Sheet.” You can save Google Docs and Google Sheets templates to Google Drive for editing and sharing.Go to your Google Drive account. Below we’re offering a wide selection of downloadable, free budget templates. This makes it easy to organize and analyze your financial data. If you’re not familiar with creating a budget, simply fill out the pre-formatted templates with your income and expense information, and the template will do the calculations for you. One of the benefits of using a budget template is that it can save you time. Actual performance may differ from those projections, but a budget that is both conservative and flexible can help a business navigate and keep track of financial variables as they arise. Especially during lean economic periods, a budget can help individuals tighten spending to maintain some financial control and avoid taking on more debt.Ī budget allows a business to assess current resources and create more accurate estimates of future revenues and expenses. In a business setting, a budget can be an essential tool for measuring performance over time, setting attainable goals, and informing strategic plans.įor personal use, a budget can help individuals create a plan to reduce debt or increase savings, provide insight into monthly spending habits, and help balance expenses to support one’s financial goals. ![]() When it comes to money management, a little time and effort can go a long way.
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