Want to build your own customised budget? We’re here to help you get started off on the right foot. Use our step-by-step guide to create your own budget and start working towards your financial goals.
Starting with the first cell (A1), create column headers that read as follows: Bills, Amount, Balance and Due. Highlight the row with a colour to help differentiate it from your entries later on. You can do this by highlighting the row and shading the cells using the fill paint icon.
Lock the cells in place so that they will remain at the top as you scroll through your entries. To do this, select the row underneath the row with your headings. Click Window in the tool bar, then select Freeze Panes.
Now start creating your budget categories in the Bills column. To make these easier to read, boldface the main category names and italicise the subcategories.
In the Amount column (B), designate a budget for each expense subcategory. If you are budgeting for an expense that is being paid off slowly, such as a mortgage or credit card, write the total amount you owe in the balance column. If desired, write the date each expense is due.
At the end of each category, add a line for the total. To distinguish this row from the others, highlight the row and shade the cells as you did in step 1.
Next, you’ll add up your total costs for each spending category one at a time. For each category, click the cell where the Amount and Total intersect. Now it’s time to write the formula. Type “=SUM(” and drag your mouse to select the cells on the spreadsheet you want to add together. End it with a “)” and press enter. See the example for more detail. Repeat this for each category.
Once you have the budgets set for all your expenses, it’s time to calculate their overall combined total. Make a row that says Total Overall Expenses below your last category. Click the cell where Amount and Total Overall Expenses intersect, then type “=SUM(” just like you did in step 6. Select the boxes where Amount meets Total for each category. When you’ve selected them all, close off the formula with “)” and press enter.
Fill in the Balance columns to accurately reflect your expenditures.
Lastly, look at your total expenses and evaluate your spending. Is the amount higher than your monthly income? If so, you need to look for areas where you could cut back on your spending. But even if your total expenses are less than or equal to your monthly income, you should still look for ways to reduce excessive spending. After all, the purpose of a budget is to help you save money!
The information in this post is provided for educational and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. The information in this post is not intended to be and does not constitute financial or any other advice. The information in this post is general in nature and is not specific to you the user or anyone else.