Budgeting For Beginners | How To Create A Budget From Scratch (2025), by Austin Williams on YouTube. 13 min 43 s.
- Video length
- 13 min 43 s
- Time to do it
- 1 hour
- Difficulty
- Easy
- Steps
- 10
What you need
Steps
Collect every statement that shows last month's spending: bank accounts, credit cards and any debt payments. Have them open or printed before you start.
Open the free budget spreadsheet from the description and save your own copy with File then Make A Copy. Type only in your copy so the blank template stays clean.
Work through the statements and enter each expense: the date, what you bought, and the exact amount down to the penny.
Pick an expense category for each line in the Expense Category column, such as housing, food or transport. The charts fill in automatically as you go.
Mark each expense as Fixed or Variable. Rent and subscriptions are fixed because the amount stays the same; groceries and fuel are variable.
Tag each line as a want or a need in the Want/Need column. Be honest here, because this column drives the cuts later.
Open the Budget Breakdown tab and list your income sources. The sheet calculates what is left after spending, so you can see whether the budget balances.
If spending is higher than income, review wants first and cut what you can live without. Then check variable costs for anything you can lower and record the savings in the Variable Expenses Savings table.
Look at fixed expenses next and note any you can reduce or cancel in the Fixed Expenses Savings table. The blue table then shows whether the budget works with those savings.
Once the budget balances, open the Savings Goals tab and set realistic goals based on the amount left after bills. Then revisit the sheet every month and update it as your habits change.
Tips and common mistakes
Track a full month, not a partial one, so one-off bills like insurance do not distort the picture.
Enter amounts to the penny rather than rounding, or the totals will drift from your statements.
Cut wants before touching fixed costs, since cancelling rent or a car payment is rarely an option.
Set a reminder each month to update the sheet, because a budget goes stale fast.
Questions
Do I need Excel to use the template?
It is a spreadsheet file, so any spreadsheet app that opens it will work. Just make your own copy first so you keep a clean version.
What if I spend more than I earn?
Cut your wants first, then look for variable costs you can lower and fixed costs you can cancel or renegotiate. Record each saving in the matching table until the budget balances.
How far back should I track expenses?
One full month is enough to see your normal pattern. Use the last calendar month so the statements line up with the dates you enter.
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.
