How to Create Budget in Excel: 4 steps

Use our Excel budget guide to get things under control. Easy-to-use formulas, deep insights, and a free tour plan for your trip.

Making a budget in Microsoft Excel is a flexible and adaptable way to manage your money well. Using Excel’s features, people can make a budget that fits their unique financial needs, whether they’re for themselves or their whole family. In this article we showed how to Create Budget in Excel.

For people who would rather use a framework that has already been designed, templates are easy to find and use. On the other hand, making a budget from scratch lets users make it exactly how they want it, so they can keep very detailed records of their income, expenses, and savings. Excel’s formula functions let you do calculations automatically, which makes it simple to keep an eye on your spending, savings goals, and overall financial health.

Also, Excel’s adaptability lets changes be made as finances shift, which keeps the budget useful and up-to-date over time. With Excel’s easy-to-use interface and powerful features, making and sticking to a budget is simple. This gives people the power to take charge of their money and reach their financial goals. To get more information go to their official website.

How to Create Budget in Excel

  1. Download Excel budget template The budget template must be downloaded first. I like this free Microsoft Excel personal budget template. This and many other free budget templates are on Microsoft Create. Here’s how to enter income and expenses into the budget template.
  2. Enter income into budget template Enter your income on the “Income” sheet. A table with categories like “Salary,” “Freelance Income,” etc. is shown here. Simply enter the appropriate amount for each category and add any new income sources below. You can add a $500 freelance project to the right category or create a new one.
  3. Enter expenses into budget template Go to the “Expenses” sheet in your Excel budgeting template to enter expenses. A table with categories like “Rent/Mortgage,” “Utilities,” “Food,” etc. is here. Please enter the appropriate amount for each category and add new expenses as needed. Say your nursery costs $800. Enter it below.
  4. Add budget template columns Add a budget column to compare actual expenses to budget. Enter your category budgets in column D “Budget”. After adding the budget column, you can calculate the difference between actual and budgeted expenses. Let’s call column C Difference.” Deduct your spending from the budgeted amount and autofill. This Excel budgeting template shows how much you overspent or underspent in each category.

Benefits of Creating a Budget in Excel

Clear thinking and organisation:

  • Sorting: It’s easy to sort your income and expenses into groups that make it easy to see where your money goes.
  • Tracking: Keep track of your income and expenses over time to make a record that you can use for analysis and planning for the future.
How to Create Budget in Excel
  • Visualisation: Use graphs and charts to see how you spend your money and figure out what you can do better.

Automation and Getting Things Done:

  • Formulas: Use them to automate calculations for sums, balances, and differences, which cuts down on errors and work that needs to be done by hand.
  • Templates: Use templates that have already been made or make your own to save time and make sure everything is the same.
  • Flexibility: You can easily change categories, sources of income, and tracking of expenses as needed.

Tips for Effective Budget Management in Excel

Setting up your spending plan:

  • Begin by making a template: You can use budget templates that come with Excel or make your own with clear sections for income and expenses.
  • Explain categories: Separate your income (like salary, freelance income, etc.) and expenses (like rent, groceries, entertainment, etc.) into clear categories.
  • Include all accounts: To keep accurate records, make sure that all of your income and expense accounts are included.

Entry of Data and Tracking:

  • Use formulas (SUM, VLOOKUP) to do calculations automatically and cut down on mistakes made when entering data by hand.
  • Regular updates: To keep your budget accurate, add new information about your income and expenses on a regular basis.
  • Label transactions: Make sure that each transaction is labelled correctly so that it’s easy to keep track of expenses.

Common Issues in Budgeting Spreadsheets

Mistakes in entering data and formulas:

  • Manual entry: Entering data by hand takes a lot of time and can lead to mistakes like typos, missing entries, and bad formatting.
  • Incorrect formulas: It can be hard to make and keep up with complex formulas, which can lead to wrong calculations and results that aren’t what they seem to be.

Problems with sharing and working together:

  • Multiple versions: If you share spreadsheets with other people, there may be problems with version control and changes that don’t match up.
  • Access control is limited because Excel’s password protection isn’t very strong, which makes it hard to keep data safe and keep sensitive information from getting out.

Limitations on scalability and forecasting:

  • Nature of being static: Spreadsheets aren’t made to handle data that changes all the time. Making changes by hand increases the chance of making mistakes.
  • Excel’s built-in forecasting tools are pretty basic, so they might not work for more complicated situations.


Are there budget templates in Excel?

Making a budget for your family can be hard and time-consuming. However, Excel has many free and paid budgeting templates that can help you stay organised and on track.

What is the formula for total budget in Excel?

Use the sum formula in Excel to add up your income and expenses to make a budget. How to do it: To add up the numbers, click on the cell you want to use. Type “=SUM(” and then the range of cells that have numbers you want to add.

How do I calculate monthly expenses in Excel?

Type in the range of cells that hold the expense items, with commas separating them. For example, “=SUM(C2:C10)” would be the formula for the amount of money you spent in cells C2 through C10. This will show you how much you spent that whole month.

Editorial Staff
Editorial Staff
The Bollyinside editorial staff is made up of tech experts with more than 10 years of experience Led by Sumit Chauhan. We started in 2014 and now Bollyinside is a leading tech resource, offering everything from product reviews and tech guides to marketing tips. Think of us as your go-to tech encyclopedia!


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