Do you want to keep track of your budget but don’t know where to start?
The Excel Budget Template is a great option to keep track of your budget easily without going into the details of some of the more complex tools.
Whether you’re putting off for your next vacation or taking on managing monthly expenses, using a budget template is a smart way to achieve your goals.
What makes a good budget template?
Everyone starts budgeting with good intentions, but the budget only works if you stick to it. I’m sure you’ve heard the survey results and personal finance statistics that only 41% of people follow a budget.
One of the most important qualities of a good budget template is that it easy to use.
As an unreformed spreadsheet nerd, I tend to overcomplicate things in order to track and categorize the smallest details of each transaction. But when it comes time to sit down and really look at the data, I’m reluctant because it will take my time.
It is a myth that budgeting should take several hours each month. Find a template that allows you the flexibility to adjust to your budget and lifestyle. You are probably better off tracking only 9 or 10 budget categories, not 30 or 40. You can always split them later if you find that you need more granularity on a specific item.
With simplicity in mind, below are some of my favorite recommended budget templates (in Excel or otherwise).
5 best free Excel templates for budgeting
Google Docs budget spreadsheets
If you have a Google account (and who doesn’t?), You can search the Google Docs template gallery and find ready-made budget sheets.
There are a few things to love about budgeting in a Google spreadsheet:
- Accessible from anywhere with an internet connection
- Simple and straightforward template
- Comes with pre-created budget categories, but you can also customize them to suit your needs.
There are currently two different budget templates, one for the monthly budget and the other for the annual budget. Both keep track of your income and expenses and provide you with beautiful charts and graphs of your cash inflows and outflows using predefined formulas.
I would choose an annual budget, so I only needed to track one file per year. But if you want to take a closer look at your finances, you can opt for the monthly option.
How to get the budget template: Go to docs.google.com and select Tables. Then you can browse the template library. Here’s a monthly budget and an annual budget.
FTC Budget Worksheet
For maximum simplicity, the FTC has published a two-page fillable PDF that allows you to enter income and expense data by month. You can also print it and fill it in manually if you prefer.
There are budget categories for housing, food, transportation, health, personal expenses, finance, and others.
If you’re not an Excel expert and just looking for an easy way to keep track of your finances, this budget template might be for you.
How to get the budget template: Go to the FTC website under Money Management and click on Budgeting.
Microsoft Excel budget templates
If you’ve come here for budget Excel templates, where better to look than the Microsoft Template Library?
There are dozens of budget spreadsheet templates to choose from. Microsoft has something for everyone, whether you’re looking for a simple monthly budget counter or a trendy budget book with multiple tabs and charts.
They even have templates for specific events like wedding, vacation, or college.
How to get the budget template: Browse the available Microsoft budgeting templates online and download any that interest you.
Excel PearBudget Template
PearBudget started out as a downloadable Excel template that is now a complete online budgeting tool.
But the original Excel budget spreadsheet is still available as a free download.
You can track your spending month by month, and the tool has tons of helpful instructions to help you stay on track. I love PearBudget because it separates your variable expenses like food, gas, and medical expenses from your regular fixed expenses like rent, insurance, and your phone bill.
There is also an Analysis tab to help you compare your income and expenses by month and see where you could save.
How to get the budget template: You can download an Excel budget template from PearBudget’s website.
Vertex42 budget templates
If you haven’t come across the Vertex42 before, this is a treasure trove of everything Excel.
As of this writing, they have 33 different Excel budget templates to choose from, from basic family budget planners to sophisticated analytics on every transaction.
I’m a visual learner, so some of the graph and chart templates available make it easier for me to see my budget than just looking at the numbers in a spreadsheet.
How to get the budget template: Browse all available budget templates on Vertex42.
Fundamentals of budgeting
Honestly, you don’t even need a spreadsheet to keep track of your budget. Pen and paper are usually fine.
The purpose of budgeting is to understand where your money is coming from and where. From there, you can set limits on your budget to try and achieve your goals, whether it’s saving on family vacations or investing in your 401k.
Track your income
It is important to keep track of your inflows and outflows before budgeting. Tracking income is pretty straightforward for most people.
If you are paid biweekly, you will record your salary when you receive it. Since there are 26 salary periods in a year, you will receive two salaries in most months, but after a couple, you will receive three.
If you have other sources of income, you’ll want to track them as well. Whether you’re making a few dollars here and there with apps on your phone, or you’ve learned how to make an extra $ 1,000 a month with the side hustle, keep track of it!
As the saying goes, “what is measured is controlled.” By writing down all of your sources of income, you can find ways to increase your various sources of income.
Track your expenses
On the other hand, you also need to keep track of where your money is going. I believe that keeping track of your spending is one of the best ways to improve your financial future for yourself and your family.
Most people are very surprised at what they are spending their money on when they see how all this is laid out. You may have thought you were spending $ 200 a month going out to eat, but in reality it is closer to $ 1000. Or the reality of the fact that your mortgage is taking up over 50% of your paycheck becomes apparent when you see it on paper.
There is nothing wrong with spending money, but often when you see it on paper, you realize that you are spending more on what you don’t really value and less on what you do. It allows you to do the hard work of redirecting your money to where you want to spend it.
Set a budget and stick to it
After you’ve tracked your income and expenses for a month or two, you’re ready to assess your financial situation and seriously budget.
There are many ways to create a budget, and different methods work for different people. Some people may need to set a budget limit for each expense category and track it closely to meet their goals. For others, by tracking your expenses, you can easily see a few areas to keep track of and you simply set a budget for certain types of expenses.
There are no wrong answers as long as you work towards your financial goals.
Need help setting budgeting goals?
It can be difficult to get started on a tight budget at first.
How much should you spend on food, mortgages, or clothing? How much should I save for my retirement or contingency fund?
If you need a little help figuring out your initial budgetary expectations, here are some tried and true methods to guide you.
Dave Ramsey’s budget percentage
Dave Ramsey is arguably the godfather of the family budget. Dave Ramsey’s Budget Percentage is a great tool for getting your family budget back on track.
It distributes a percentage of your spending across each of eleven different budget categories:
- Distribution – ten%
- Saving – ten%
- Food – 10 to 15%
- Utilities – 5 to 10%
- Frame – 25%
- Transport – ten%
- Health – 5 to 10%
- Insurance – 10 to 25%
- Recreation – 5 to 10%
- Personal expenses – 5 to 10%
- Miscellaneous – 5 to 10%
Keep in mind that these are just guidelines for setting your own budget. For example, in some parts of the country, housing may be more expensive, or certain medical needs may require additional costs. But these budget interest rates are a great starting point to start.
Budget 50-20-30
The 50/20/30 budget is another system similar to Dave Ramsey’s budget interest rate, and it’s even simpler.
With this budget, 50% of your spending goes to needs, 30% to desires, and 20% to savings.
Compared to the above budget percentages, it would look something like this:
- 50% of the need – Housing, utilities, food (grocery), transportation, insurance
- 30% Wants – Food (Eating out), Leisure, Personal, Miscellaneous
- Save 20% – Savings, retirement, debt repayment
Reverse budgeting
Reverse budgeting is what it sounds like. You “pay yourself first” by determining how much of your income you will save.
Only after withdrawing this amount do you distribute the remainder to your expenses. This is a useful exercise if you scratch your head at the end of each month and wonder why you have nothing more to invest in savings.
From paycheck to paycheck budget
Are you constantly digging in your wallet or purse looking for little change to pay for groceries, or say something like, “I need $ 20 right now!”?
If so, then your budget may need a little more careful maintenance and control. If you live paycheck to paycheck and can’t figure out how to get out of the hole, a paycheck to paycheck budget can help you.
The idea is simple – instead of a monthly or yearly budget, your budget revolves around your billing cycle. Thus, if you get paid every two weeks, your budget will cover two weeks at a time. If rent is due a few days after your first paycheck, this will be part of your bi-weekly budget. If you have a payment for a car on the 12th of every month, be sure to consider where it should be sent.
This budget will help you plan all your expenses and determine what salary they will come from. The ultimate goal is to save some emergency funds so you can break the paycheck to paycheck cycle and save a little for unexpected expenses.
Excel Budget Template Final Word
There are many great resources to help you track and maintain your budget.
But no budget table will magically put your budget back on track. you need to sit down and get the job done.
If you’re ready to track your income and expenses and set realistic budgeting goals, any of the tools listed in this article are a great place to start.
So what are you waiting for? Today is the first day of your financial future!
This post originally appeared on Savoteur.
