You don't need budgeting software to see where your money goes. A free Google Sheets file with four columns and three formulas will do it. Here's how to build one in about 20 minutes.
Step 1: Start a sheet with four columns
Open Google Sheets, start a blank spreadsheet and type these headings in row 1:
- A: Category
- B: Budget
- C: Actual
- D: Left
Step 2: List your categories
In column A, list what your money goes to. Start with income at the top, then fixed bills, then everyday spending, then savings. For example: Paycheck, Rent, Utilities, Phone, Insurance, Groceries, Transportation, Dining out, Subscriptions, Fun money, Emergency fund. Keep it to 10–20 lines at first; you can split categories later.
Step 3: Fill in your budget
In column B, enter what you plan for each category this month. Use last month's bank and card statements as a guide for anything that varies.
Step 4: Add the three formulas
-
What's left in each category: in D2, type
=B2-C2and drag it down the column. -
Totals: under your last row, use
=SUM(B2:B20)for the budget total and=SUM(C2:C20)for the actual total (adjust the row numbers to your list). -
Money left over: income minus everything else. If income is in row 2 and expenses are in rows 3–20, use
=C2-SUM(C3:C20).
Optional: select column D, choose Format → Conditional formatting, and color cells red when the value is less than 0 so overspending stands out.
Step 5: Track as you go
Add what you actually spend to column C. The simplest habit: once a week, open your banking app and add up each category. It takes about ten minutes, and the sheet shows where you're on track and where you're not.
Step 6: Copy the tab each month
At the end of the month, right-click the tab, choose Duplicate, rename it for the new month and clear column C. Over a few months you'll see which budgets were realistic and which need adjusting.
Common sticking points
- Irregular costs like car registration or holiday gifts: give them a monthly line and set money aside. See sinking funds, explained.
- Paid every two weeks? A monthly sheet can hide a tight paycheck. See how to budget biweekly paychecks.
- Not sure where to start? The 50/30/20 rule gives you a starting shape.
Want it built for you?
The Calm Budget ($19, one-time) is a ready-made version of this sheet with more done for you: a transaction log with category dropdowns, a monthly budget vs. actual view with over-budget categories flagged, savings rate, and all 12 months side by side with a chart. It works in Google Sheets (free) and Excel, and never connects to your bank.
General information for planning, not financial advice.