How to Build a Simple Budget in Excel, by Spreadsheet Life on YouTube. 14 min 34 s.
- Video length
- 14 min 34 s
- Time to do it
- 20 minutes
- Difficulty
- Easy
- Steps
- 8
What you need
Steps
Open Excel and create a blank workbook. Save it straight away as something like Monthly Budget so you can find it later.
In row 1, type your headings across the columns: Item, Planned, Actual and Difference. Bold the row so it stands out.
Leave a few rows for income. Add lines for each source, such as salary or freelance work, and type the planned amount in the Planned column.
Add a section for expenses below the income. Group them into categories like housing, food, transport, bills and fun, with one row per item.
Under the income block, use a SUM formula such as =SUM(B2:B5) to total planned income. Repeat for the expense block to get total planned spending.
In the Difference column, subtract the actual amount from the planned amount for each row, for example =B2-C2. Copy the formula down the column.
Add a balance row that subtracts total expenses from total income. Format it in bold so you can see at a glance whether you are over or under.
Fill in the Actual column as you spend during the month. Check the balance row regularly and adjust the planned figures if a category keeps going over.
Tips and common mistakes
Format money columns as Currency so the numbers read clearly and totals add up correctly.
Use a separate row for every expense rather than lumping them together, so you can see where the money goes.
Lock the header row with Freeze Panes so it stays visible as your list grows.
Keep the planned column realistic at first, then adjust it after one full month of actual figures.
Questions
Do I need a template to do this?
No. A blank workbook with headings and a few SUM formulas is enough. Templates can save time but are not required.
Can I use Excel for free?
Excel for the web is free with a Microsoft account, though some features differ from the desktop version.
How often should I update the budget?
Once a week is usually enough. Enter actual spending as it happens so the balance stays accurate.
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.
