How to create a basic monthly budget in Google Sheets

Start by opening a new Google Sheet and giving it a clear name, such as Monthly Budget. Begin by setting up your basic structure by creating headers in the first row. Use columns for categories, planned amounts, actual spending, and the difference between the two.

In the first section of your sheet, list all your sources of income. This might include your primary salary, freelance earnings, or any other monthly revenue. Enter the expected amount you anticipate receiving for each source in the planned column.

Below your income section, create a category for expenses. It is helpful to divide these into fixed costs, like rent and insurance, and variable costs, like groceries and entertainment. List each individual expense in its own row to ensure nothing is overlooked.

To automate your calculations, use the SUM function. At the bottom of your income and expense columns, type =SUM followed by the range of cells you wish to total. This will give you an instant look at your total monthly revenue and total projected spending.

Next, calculate your net balance by subtracting the total expenses from the total income. Creating a simple subtraction formula in a separate cell allows you to see exactly how much money is left over for savings or debt repayment each month.

Finally, maintain your budget by entering your actual spending as the month progresses. Comparing your actual costs to your planned amounts helps you identify areas where you are overspending, allowing you to make necessary adjustments for the following month.