How to Make a Budget Spreadsheet (Using Our Free Download!)

Budgeting doesn’t have to be difficult – this step-by-step guide will show you how to manage your money, and I’ll show you how to create a budget spreadsheet with a free download to make it easy.

When my husband and I got married 22 years ago, we made a commitment not to go into debt while in law school. We lived on beans and rice (we had a $30 grocery budget for all of our meals together!). During those lean law school years, it wasn’t always easy to put numbers to paper and put pen to paper, but I’m so glad we did. Following our written monthly budget kept us out of debt and helped us achieve financial freedom.

If you ever find yourself wondering, “Where did all my money go this month?” you are not alone. I have had moments like that, especially in those months when we had a tight budget.

That’s why having a simple, effective budget is such a gift. It keeps you on target and knows where your money is actually to the place where you are hope it goes.

One of the easiest ways to stay on top of your budget is to track it – really track it – and this free Budget Spreadsheet worksheet is designed to help you do just that in an easy, cost-effective way.

Today, I’m taking you step-by-step on how to fill it out so your budget can start working yours instead of leaving you stressed and guessing each month.

Start with Why: The Power of Tracking Your Budget

Before we get into the process, I want to encourage you: managing your budget with passion is one of the best gifts you can give to your future self. If you track what you plan to use again In fact, you’ll start to notice habits, patterns, and savings opportunities that you wouldn’t have noticed otherwise.

A budget only works if you work with it – you go in every month, adjust, learn, and celebrate small wins. Don’t aim for perfection; aim for awareness and progress.

Step by Step: How to Complete Your Budget Spreadsheet

Step 1: Start with Your Monthly Income

Start at the top of the page where there is Monthly Income.
This is your actual, take-home pay after taxes, insurance, and any deductions.

If your income changes:

• Use your average take-home pay from the last 3 months, OR
• Use your expected down month to give yourself some breathing room

(Find more details in this post about budgeting for irregular income!)

This number is your starting point when creating a budget. Everything else will flow from here.

Step 2: Work Out Each Category With Your “Budget” Amounts

You will now move section by section into the spreadsheet and enter your ‘Budget Amount’ for the month. This is what you plan or hope to use. So give yourself reasonable expectations based on your past spending.

The worksheet covers the most common budget categories:

Houses

Include things like:

• Rent or mortgage
• Property taxes
• HOA fee
• Home repairs or maintenance (if applicable)

This is usually your biggest expense, so it helps to start here when creating your monthly budget.

Resources

Next, fill in your resources:

• Electricity
• Water/sewage
• Garbage service
• The Internet
• Gas or heating
• Phone bill

If you are unsure of the amount, check your last 1-2 bills to get a realistic estimate.

Insurance

Add up your monthly premiums for:

• Health insurance
• Car insurance
• Home or renter’s insurance
• Life insurance

Even though this is written automatically, it still counts towards your monthly usage so write it down.

Loan payments

List any debts you currently pay:

• Car loans
• Student loans
• Credit cards
• Personal loans
• Medical debt

This helps you see exactly how much income is going towards paying off your past expenses.

Subscriptions and Memberships

This adds up quickly to your family budget! Put in:

• Streaming services
• A gym membership
• Monthly apps
• Software registration
• Subscription boxes

If you pause, cancel, or skip a month’s subscription, make a note in the “difference” column later.

Personal Care

This is where things like haircuts, toiletries, makeup, and household items go. Think about the common things that keep your family busy each week.

Food

Break this down into:

• Groceries
• Eating / Taking out

Food costs can be tricky, so having these two buckets helps you stay grounded and realistic.

Transportation

Add things like:

• Gas
• Oil change
• Parking fees and toll roads
• Public transportation
• Automotive repair dip bag

Entertainment and Miscellaneous

This is where you budget:

• Family activities
• Movie night
• Hobbies
• Gifts
• Other expenses not included in the categories above

Think of this phase as anything that brings joy, connection, or creativity to your moon.

Step 3: Track Your Actual Spending as the Month Goes On

This is the part that makes the spreadsheet powerful.

Every month — at least every week — come back and fill in the ‘Actual Amount’ column for each expense. This is what really cost you, even if it wasn’t what you planned.

If you want to stay on top of things:

• Keep receipts in one place
• Check your banking app once a week
• Make it a habit to review your spreadsheet every Sunday night

This helps your budget stick alive instead of being something you look at once and forget.

Step 4: Fill in the “Difference” Column.

At the end of the month (or as you go), record the difference between your budgeted total and the amount you spent. This ‘Difference’ column is what helps you get better month after month. Your built-in accountability.

You will begin to notice patterns like these:

• “Wow, I always look down on what you eat.”
• “We always overspend on food.”
• “I had more of a cushion than I thought in the utilities.”
• “Our subscription is more expensive than I realized.”

This ‘Difference’ column is what helps you get better month after month. Your built-in accountability.

Step 5: Prepare and Develop Next Month’s Budget

Once you have seen the full moon at a glance, you will have a clear picture of what needs to be fixed. Maybe you need to stock up on groceries, create a sipping bag, or challenge yourself to stick to your meal plan.

Your budget should help you, not the other way around. Don’t be afraid to adjust it until it really fits your family’s life and rhythm.

You’re Ready to Get Started!

Creating a budget doesn’t have to be scary or difficult. With a simple spreadsheet and a few minutes each week, you can manage your money with confidence, avoid unnecessary stress, and make real progress toward your financial goals.

If you haven’t downloaded the free worksheet yet, you can grab it here.

More Links You’ll Like:

What is the biggest challenge you face when trying to make a monthly budget? Share in the comments below!