How to Make a Budget in Google Sheets: A Simple Step by Step Setup

A budget does not need fancy software. If you can type a list and add numbers, you can build a budget in Google Sheets, and it costs nothing. Google Sheets is a free spreadsheet tool that runs in your web browser, and your sheet is saved online, so you can open it on your phone or your computer.

The short answer

You can build a simple budget in Google Sheets in about 20 minutes. You make one sheet with your income at the top, your spending categories below, and three columns for planned, actual, and difference. A SUM formula adds each column for you. Copy the sheet for each new month, and check it for 10 minutes each week.

Why use Google Sheets for a budget?

A budget app can be useful, but it is not the only way. Google Sheets gives you a blank page that you shape yourself. That is a strength, because you only track what matters to you, and you see every number. There is no monthly fee and no bank account to link. Your numbers stay in your own sheet. You can open it on your phone, and you can rename a category in seconds.

What you need before you start

You need three things before you open the sheet. First, your income for the month, after tax, which is the money that actually lands in your account. Second, a rough idea of what you spend, from last month’s bank statement or a quick look through your receipts. Third, about 20 minutes of quiet time to set the sheet up. The first setup takes the longest. After that, each month takes only a few minutes.

Step 1: Open a blank sheet and set up your columns

Open Google Sheets and start a blank spreadsheet. Name it, for example “My Budget” with the month and year. At the top of the sheet, make four columns. In the first column, write “Category”. In the second column, write “Planned”. In the third column, write “Actual”. In the fourth column, write “Difference”. Planned is what you expect to spend. Actual is what you really spent. Difference shows the gap between the two. Use the same four columns for the whole sheet.

Step 2: List your income rows

Start with your income at the top of the sheet. Write one row for each source of money you expect this month. For most people, this is one or two rows: your main job pay and any regular side income. Write the amount in the Planned column. Only count income you are fairly sure will arrive. Below your income rows, leave one empty row and write “Total income” in the Category column. This is where your SUM formula will go, which we cover in step 4.

Step 3: List your spending rows

Below the income section, list your spending. Use broad categories so the list stays short. A good starting list is housing, food, transport, phone, bills, fun, and savings. Ten rows or fewer is a good target. For each row, write the amount you plan to spend in the Planned column. Your savings row is important. Treat savings as a planned cost, not as whatever is left at the end. At the bottom of the list, write “Total spending” in the Category column. Leave the Actual column empty until the month starts.

Step 4: Add the SUM formula

Now add the totals. A SUM formula adds up a range of cells for you. Click the cell next to “Total income” in the Planned column, type =SUM(, then the range of your income amounts. For example, if your income amounts are in cells B2 to B4, type =SUM(B2:B4) and press Enter. The sheet adds the numbers and shows the total. Google’s own help page describes SUM like this: it returns the sum of a series of numbers and/or cells. Do the same for total spending. If your spending amounts run from B6 to B12, type =SUM(B6:B12) in the total spending cell. The totals update every time you change a number.

Step 5: Add the difference column

The Difference column shows whether you spent more or less than planned. In the first spending row, type a formula that subtracts the actual amount from the planned amount. If planned is in column B and actual is in column C, type =B2-C2 in the Difference cell and press Enter. A positive number means you spent less than planned. A negative number means you spent more than planned. Copy this formula down the column for every row. At the bottom, the total difference tells the whole story. If total income is more than total spending, the difference is money you have left. If spending is more, the difference is a warning.

A worked example: one month in the sheet

This is an example only, with simple round numbers, to show how the sheet works.

Income rows. Job pay, $3,000. Side work, $200. Other income, $100. The formula =SUM(B2:B4) adds these and gives a total income of $3,300.

Spending rows. Rent, $1,200. Food, $400. Transport, $200. Phone, $60. Fun, $100. Savings, $300. Other, $150. The formula =SUM(B6:B12) adds these and gives a total spending of $2,410.

Now take income minus spending. $3,300 minus $2,410 is $890 left over. That $890 shows as a positive number in the Difference column. If the person in the example then spends $100 more on food than planned, the food difference becomes minus $100, and the total left over drops to $790.

How to copy the sheet for each new month

When a new month starts, do not delete your old numbers. Right click the tab at the bottom of the sheet and choose Duplicate. Rename the new tab with the new month, for example “November 2026”. Then clear the Actual column and the Difference column in the new tab, but keep the Planned column and your category rows. Your old month stays in its own tab. Over time, you will have one tab per month in a single file. This makes it easy to see whether your spending is going up or down. If a category keeps going over plan, change the plan.

Simple habits that make it stick

Set a weekly check of 10 minutes, on the same day each week. Open the sheet, type in what you spent that week, and look at the Difference column. Ten minutes is short enough to keep doing it. Keep one tab per month. Check your bank balance too, so the sheet matches real life. Keep the sheet simple. If you add too many categories, the weekly check becomes a chore and you will stop doing it. Change your plan when life changes.

Common mistakes to avoid

Three mistakes cause most people to give up. The first is making too many categories. Start with fewer than ten. The second is forgetting costs that do not happen every month, such as a yearly car cost or a birthday gift. Add a row for them when they come up. The third is never looking at the sheet after setting it up. A weekly 10 minute check is enough. If you miss a week, just pick it up again.

Quick answers

Related guides

• Budgeting for Beginners: A Simple Step by Step Guide to Your First Budget
• Budgeting Tips for Beginners: Simple Habits That Make a Budget Stick
• Budget Categories for Beginners

Further reading

• SUM – Google Docs Editors Help

Google’s SUM help page explains that SUM returns the sum of a series of numbers and/or cells, and shows examples such as SUM(A2:A100) and SUM(1,2,3,4,5).

Disclaimer: This article is for education only. It is not financial advice, and it does not tell you how to spend your money. Your budget should match your own income and costs, and you can change it at any time. If you need help with debt or a difficult money situation, consider speaking to a qualified adviser or a nonprofit credit counsellor.