Making a budget doesn’t have to be overwhelming — this step-by-step guide will show you exactly how to take control of your money, plus 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 committed to stay out of debt while he went to law school. We lived on literal beans and rice (we had a $30 weekly grocery budget for all our meals for the two of us!). During those lean law school years, it wasn’t always easy to face the numbers 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’ve ever found yourself wondering, “Where did all of my money go this month?” you’re not alone. I’ve definitely had moments like that, especially during those months when we’ve had a really tight budget.
That’s why having a simple, working budget is such a gift. It keeps you intentional and aware of where your money is actually going instead of where you hope it’s going.
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 exactly that in the easiest, least overwhelming way.
Today, I’m walking you step by step through how to fill it out so your budget finally starts working for you instead of leaving you stressed and guessing each month.
Start With Why: The Power of Tracking Your Budget
Before we jump into the how-to, I want to encourage you: actively managing your budget is one of the best gifts you can give your future self. When you track what you planned to spend and what you actually spent, you’ll start to notice habits, patterns, and opportunities to save that you wouldn’t see otherwise.
A budget only works when you interact with it — checking in throughout the month, adjusting, learning, and celebrating the small wins. Don’t aim for perfection; aim for awareness and progress.
Step-by-Step: How to Fill Out Your Budget Spreadsheet
Step 1: Start With Your Total Monthly Income
Begin at the top of the worksheet where it says Total Monthly Income.This is your real, take-home pay after taxes, insurance, and any paycheck deductions.
If your income fluctuates:
Use your average take-home pay from the last 3 months, OR
Use your lowest expected month to give yourself breathing room
(Find more details in this post about budgeting on an irregular income!)
This number is your starting point when creating a budget. Everything else will flow from here.
Step 2: Work Through Each Category With Your “Budgeted” Amounts
Now you’ll move section by section through the spreadsheet and enter your ‘Budgeted Amount’ for the month. This is what you plan or hope to spend. So give yourself reasonable expectations based on your past spending.
The worksheet includes the most common budget sections:
Housing
Enter items like:
Rent or mortgage
Property taxes
HOA fees
Home repairs or maintenance (if applicable)
This is usually your biggest expense, so it helps to start here when making your monthly budget.
Utilities
Next, fill in your utilities:
Electricity
Water/sewer
Trash service
Internet
Gas or heating
Phone bill
If you aren’t sure about an amount, check your last 1-2 bills to get a realistic average.
Insurance
Add your monthly premiums for:
Health insurance
Car insurance
Home or renters insurance
Life insurance
Even if these are drafted automatically, they still count toward your monthly spending so write them down.
Loan Payments
List any debts you’re currently paying off:
Car loans
Student loans
Credit cards
Personal loans
Medical debt
This helps you see exactly how much of your income is going toward paying back past spending.
Subscriptions and Memberships
These add up quickly in your family budget! Include:
Streaming services
Gym memberships
Monthly apps
Software subscriptions
Subscription boxes
If you pause, cancel, or skip a subscription for the month, make a note in the “difference” column later.
Personal Care
This is where things like haircuts, toiletries, cosmetics, and household supplies go. Think of the regular items that keep your family going each week.
Food
Break this up into:
Groceries
Dining out / Takeout
Food costs can be sneaky, so having these two buckets helps you stay grounded and realistic.
Transportation
Add things like:
Gas
Oil changes
Parking fees and tolls
Public transit
Car maintenance sinking fund
Entertainment & Miscellaneous
This is where you budget for:
Family activities
Movie nights
Hobbies
Gifts
Other expenses not captured in the categories above
Think of this section as anything that brings joy, connection, or creativity to your month.
Step 3: Track Your Actual Spending as the Month Goes On
This is the part that makes the spreadsheet powerful.
Throughout the month — at least weekly — come back and fill in the ‘Actual Amount’ column for each expense. This is what you truly spent, even if it wasn’t what you planned.
If you want to stay on top of things:
Keep receipts in one spot
Check your bank app once a week
Make it a habit to update your spreadsheet every Sunday night
This helps your budget stay alive instead of becoming something you look at once and then forget.
Want to make progress on your financial goals, but don’t know where to start?
Get our FREE Budget Goal Planning worksheets!
Step 4: Fill in the “Difference” Column
At the end of the month (or as you go), record the difference between your budgeted amount and actual spending. This ‘Difference’ column is what helps you get better month after month. It’s your built-in accountability.
You’ll begin to notice patterns like:
“Wow, I always underestimate groceries.”
“We consistently overspend in dining out.”
“I had more cushion than I thought in utilities.”
“Our subscriptions are eating up more than I realized.”
This ‘Difference’ column is what helps you get better month after month. It’s your built-in accountability.
Step 5: Adjust and Improve Next Month’s Budget
Once you see the full month at a glance, you’ll have a clear picture of what needs adjusting. Maybe you need to bump up groceries, create a sinking fund, or challenge yourself to stick to your dining-out plan.
Your budget should serve you, not the other way around. Don’t be afraid to tweak it until it truly fits your family’s life and rhythms.
You’re Ready to Get Started!
Creating a budget doesn’t have to be intimidating or complicated. With a simple spreadsheet and a few minutes each week, you can confidently manage your money, 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 Love:
Set Your Financial Goals with My FREE Budgeting Goals Worksheets
Ask Crystal: How to budget in a transitional season?
How to Budget on an Irregular Income
Small Leaks, Big Impact: How Tiny Daily Spending Habits Can Quietly Drain (or Transform!) Your Budget
The 5-Minute Weekly Budget Check-In That Might Change Your Finances
45+ Things You Might Forget to Budget For
Ask Crystal: Which budgeting app is best?
Ask Crystal: How can I budget when I’m so far behind?
How to Teach Kids About Money Management: An Age-By-Age Guide
Ask Crystal: How do I get my spouse on board with budgeting?
What’s the biggest challenge you face when trying to make a monthly budget? Share in the comments below!
Ready to finally stick to your budget once and for all?!
Tracking your budget doesn’t have to be overwhelming or complicated! Use these FREE Budget Spreadsheets to easily plan and track your spending each month!
