How to Create a Simple Budget Spreadsheet

Creating a budget spreadsheet can help you take control of your finances by making you limit expenses and keep to predetermined spending allowances. When you create a budget and stick to it, you don’t have to worry about overdrafting at the bank and spiraling too deep into debt. The smart apartment resident takes the time to plan a budget.

Before You Begin

You can use software or freeware with a predefined or customizable budget spreadsheet to help you keep track of your budget digitally. You can always start with pencil and paper, but using a program with the basics outlined is a good place to start.

1- Determine Your Monthly Expenses

To create a budget, first determine the average amount you spend on expenses each month. Make a special note for annual or other expenses like insurance, doctor’s appointments, etc. For the typical apartment resident, the listings on a budget spreadsheet should include most or all of the following:

• Rent
• Utilities (Electricity, Gas/Oil, Water/Sewer)
• Renter’s/Tenant’s Insurance
• Telephone (landline and/or cell phone)
• Cable or Satellite
• Internet
• Car Maintenance
• Gas for Car and/or Bus or Train Fare
• Loan and Debt Payment
• Groceries
• Dining Out
• Entertainment
• Personal shopping

Add to or delete from this list as necessary to create a budget that matches your individual situation.

2- Determine Your Monthly Income

Make a list of your sources of income each month, including any of the following that apply:

• Wage
• Tips
• Interest from Savings
• Stock Dividends
• Gifts
• Yard or Online Auction Sales

3- Add Another Line to Your Spreadsheet: Savings

Perhaps most overlooked in the monthly budget is saving for your future. Just making ends meet is a very dangerous situation. You must put aside at least 10%–if not more–of your total monthly income. If you cannot afford to save 10% of your income, you must take the money from elsewhere, preferably a non-essential expense such as personal shopping, dining out or entertainment. Other options include refinancing loans and debts to lower your monthly payment, reassessing where you live and seeing if a smaller apartment with less rent might be better for you, taking on a roommate to help split expenses or selling your car and taking public transportation if it’s feasible in your area.

Put most of your savings into a retirement account, but keep some in a savings account. It takes only one disaster–being laid off from work, a sudden medical expense, your car breaking down–to make it impossible for you to no longer make ends meet. You must have a cushion of savings to reach into only during difficult times.

4- Carry Your Spreadsheet with You

More important than making a budget spreadsheet to be able to limit expenses is to stick with your game plan. Make two copies of your spreadsheet and hang one in your apartment and keep the other with you when you go shopping. Spend only what you’ve allowed yourself for groceries, dining out, entertainment and personal shopping. Write down how much you’ve spent each week, and make sure you don’t exceed your budget.

Once you’ve created a budget spreadsheet, you may find that you need to reexamine your lifestyle. Ways to adjust to a budget-conscious way of life include clipping coupons, watching for sales and bringing only cash or debit cards (and don’t overdraft your account)–no credit cards–when you shop.