How to Budget Using the 50/30/20 Rule in Google Sheets, by docsy on YouTube. 8 min 37 s.
- Video length
- 8 min 37 s
- Time to do it
- 20 minutes
- Difficulty
- Easy
- Steps
- 9
What you need
Steps
Open Google Sheets and create a blank spreadsheet. Name it something like Monthly Budget so you can find it later.
In cell A1 type Income, then put your monthly take-home pay after tax in cell B1. Use the amount you actually receive, not your salary before tax.
Add labels in A3 to A5 for Needs, Wants and Savings. In B3 type =B1*0.5, in B4 type =B1*0.3 and in B5 type =B1*0.2.
Format column B as currency. Select the cells, click Format, then Number, then Currency so the amounts read clearly.
List your fixed costs under a Needs heading, such as rent, groceries, utilities, insurance and transport. Put the monthly amount next to each one.
Add a Wants section below it for eating out, subscriptions, hobbies and shopping. Enter your usual monthly amounts for each.
Create a Savings section for emergency fund, debt payments and goals. Add the amount you plan to move each month.
Total each section with =SUM() and compare it to the 50, 30 and 20 targets. Adjust the amounts until each total fits its limit.
Each week, open the sheet and update the actual amounts you spent. Check whether any section is running over before the month ends.
Tips and common mistakes
Use take-home pay, not gross salary, or every percentage will be too high.
If needs take more than 50 percent, cut wants first and keep savings at 20 percent where you can.
Duplicate the sheet for each new month so you keep a record of past spending.
Round amounts to whole numbers to keep the sheet quick to read and update.
Questions
What counts as a need versus a want?
Needs are costs you cannot skip, like rent, food, utilities, insurance and minimum debt payments. Wants are optional spending such as streaming services, takeaway and new clothes.
What if my income changes every month?
Use your lowest recent monthly income or an average of the last three months. Update cell B1 each month and the 50/30/20 amounts will recalculate on their own.
Do I need a template to do this?
No. Three formulas and a short list of categories are enough, and building it yourself helps you understand where the numbers come from.
This guide was drafted from the video's details and general task knowledge. It has not been checked against the full video. Check the video and relevant product instructions before following a procedure. Report a correction.
