Budget Spreadsheets

Using Spreadsheets to Build the Best Budget

Building the Best Budgeting Tool Free Using Spreadsheets

Setting up your budget using a spreadsheet provides you with a number of benefits. Using a spreadsheet can come without a cost, and it allows you to take into account best budgeting practices like the Money Pie Calculator and the 50/30/20 rule. Having your own private finance dashboard built by and for you helps you stay accountable and track your savings and financial goals. You can update it on the fly, using your smartphone, and it doesn’t require giving your bank account access to a third-party app.

Budgeting Basics

The tool can help you with four of the five items on Money Fit’s list of steps from its Ultimate Household Budgeting Guide. It can’t help you set your financial goals, but it can help you record expenses and earnings, calculate expenses, and find and fix weak spots.

Step 1 

Create a spreadsheet. I’ve created a template you can use (below) and have set it up so you can plug in your own numbers. You can watch your budget change as you add your expenses and income. I recommend copying and pasting this to any spreadsheet tool you prefer. I’ll cover the spreadsheet software you can use below.

Step 2 

Record your expenses. First, plug in your fixed costs and estimate your variable expenses by using an average, which you can adjust later.

I’ve also made a “Miscellaneous” row in the spreadsheet that helps you prepare for unexpected costs. You should aim to track these for a year so you can work out a reliable average you’ll need on an annual basis. Obviously, you want to avoid dipping into your savings to cover these bills and expenses.

Step 3

Record your earnings. At the top of the spreadsheet in the area with light blue text, you can plug in your current income. If you need to, you can create a new row for every income stream too. You should do this after you have figured out your expenses.

Calculating your costs and your surplus (i.e. your income minus your spending) is done for you with this tool, so you only need to keep it updated as you spend.

To do this, open your app every time you spend money and remove the cost from those in red. Then, change the “balance” amount in blue to match your new bank balance.

For example, if you have a $2,000 balance, $200 budgeted for food, and you buy $75 of groceries, you will change the amount for food to $125. You will also subtract the amount spent from the balance for the month at the top of the column.

Here’s the idea behind this form of budget: you will understand if your estimation (in this case of $200) ends up being what you actually spend. If you reach the $200 you budgeted for but still have to buy another $45 of groceries before the month ends, you will need to update another budgeted item from the month so that you do not go below $0. Additionally, when you plan your food budget for the next month, you will see how much you spent this month and can adjust the cell for next month appropriately. You will do this for all spending categories. After two or three months, you will have a more realistic idea of what your spending is for each category.

Here’s an idea on how you can design your budget worksheet.

Step 4

When you first start, clear the blue income cell to $0 so you can focus on your expenses first. Otherwise, you risk turning “your budget into an activity of trying to spend as much as possible.” Money Fit has already covered this, so I’d direct you to their article on working out variable costs here.

Step 5

Not until this next step will you add your income. You can have more than one income stream if you add a second line under “Balance.” Make sure you only include your income after taxes.

Once you’ve done this, you’ll get a good idea if your plan will lead to living within your means or below them.

If the amount in “Left to Spend” sits above 0, you’re doing well, especially if you also plan to allocate some money to donations, gifts, and improving yourself. Otherwise, if you’re below 0, then you’re heading for debt and will need to tighten your financial belt in some areas.

In this template, you’ll notice two spending blocks: “main spending” and “discretionary.” The main spending budget covers your essentials, living costs, entertainment, savings, and investing. The figures for these come from the Money Pie Calculator and include 10% for investing, 10% for savings, and 10% for entertainment. The discretionary budget covers highly flexible costs. It includes budgeting for donations to charity, giving gifts, and making improvements to your knowledge and skills in order to increase your earning potential. Examples might involve taking a language course, art classes, or training program.

As the need arises, you might be tempted to dip into your discretionary budget first, although you should do what you can to keep these in your budget. Also, you can reallocate some of the living and giving amounts to saving, investing, or miscellaneous costs if needed.

The “Left to Spend” section shows you what you have left after all expected and current expenses for the month. This row already includes an amount you have planned to save, but you should also consider saving anything left over at the end of the month.

I’ve also made two savings rows:  one for “Donations/Gifts” and one for “Improving” yourself. You may need to save for several months to afford a certain gift or a class or certification you want to pass.

Software to Use

Protect your data by choosing the right software provider. Before making your choice, you need to understand how each provider processes and uses your data and how much, if anything, they charge. Below I’ll cover the top programs.

Excel (Microsoft): Microsoft offers a free, limited-feature Excel app on Android and iOS, although their desktop versions come at a cost. Microsoft has a decent data privacy policy. The company does not share your data with third parties, including advertiser-supported services. They also do not mine any of your data for marketing or advertising purposes.

Google Sheets: You can use Google’s Android or iOS app or their website. Google does not have a good track record for protecting data, so I’d think carefully about the type of information you place in a Google document or sheet. Their privacy policy refers to their responsibility for protecting your data, but Google has been called out before. Google offers Sheets at no cost.

Numbers (Apple): You can use Number’s iOS app or their computer version. Apple has a much better reputation for data protection than Google. They don’t sell data to third parties, so if you’re a Mac/iOS user, Numbers works well. It comes free with most Apple devices.

Quip (owned by SalesForce): You can use Quip’s Android or iOS app or website. Salesforce isn’t really in the business of selling your data, but they may use your data to sell their other products directly to you. “Quip does not share, sell, rent, or trade any information.” Quip does not come in a free version.

Alternative

This free budgeting tool provides you with a great deal of control over and insight into your monthly finances. However, if you want a budget that automatically allocates how much to spend in each category, you might consider the Money Pie calculator. All you need to do is change your income amount and it will calculate what you can allocate to entertainment, savings, investing, giving, and improvement.

About the Author

This Website Is Using Cookies. We use cookies to improve your experience. By continuing, you agree to our cookie use.

Client Credit Report Authorization

You hereby authorize and instruct Debt Reduction Services, Inc. (DRS, dba Money Fit by DRS) and/or its assigned agents to:
  • Obtain and review your credit report, and
  • Request verifications of your income and rental history, and any other information deemed necessary for improving your housing situation (for example, verifying your annual property tax obligations and homeowner’s insurance fees)
Your credit report will be obtained from a credit reporting agency chosen by DRS. You understand and agree that DRS intends to use the credit report evaluate your financial readiness to purchase or rent a home and/or to engage in post-purchase counseling activities and not to grant credit. You understand you may ask any questions pertaining to your credit report. However, while DRS will review the information with you, the company is not able to furnish you with a copy of your credit profile. You hereby authorize DRS to share your information from your credit report and any information that you provided (including any computations and assessments produced) with the entities listed below to help DRS determine your viable financial options.
  • Banks
  • Counseling Agencies
  • Debt Collectors
  • Landlords
  • Lenders
  • Mortgage Servicers
  • Property Management Companies
  • Public Housing Authorities
  • Social Service Agencies
Entities such as mortgage lenders and/or counseling agencies may contact your DRS counselor to evaluate the options for which you may be eligible. In connection with such evaluation, you authorize the credit reporting and/or financial agencies to release information and cooperate with your DRS counselor. No information will be discussed about you with entities not directly involved in your efforts to improve your housing situation. You hereby authorize the release of your information to program monitoring organizations of DRS, including but not limited to, Federal, State, and nonprofit partners for program review, monitoring, auditing, research, and/or oversight purposes. In addition, you authorize DRS to have your credit report pulled two additional times to conduct program evaluations. You also agree to keep DRS informed of any changes in address, telephone number, job status, marital status, or other conditions which may affect your eligibility for a program you have applied for or a counseling service that you are seeking. Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Client Privacy, Data Security, and Client Rights Policy

NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

Debt Reduction Services, Inc. (DRS) has put into place policies and procedures to protect the security and confidentiality of your nonpublic personal information. This notice explains our online information practices and how we use and maintain your information to conduct our financial education and credit counseling sessions and to fulfill information and question requests. This privacy policy complies with federal laws and regulations.

To provide our financial education and credit counseling services, we collect nonpublic personal information about you as follows: 1) Information we receive from you, 2) Information about your transactions with us or others, and 3) Information we receive from your creditors or a consumer reporting agency. We do not share this information with outside parties.

We use non-identifying and aggregate information to better design our website and services, but we do not disclose anything that could be used to identify you as an individual.

You hereby authorize DRS, when necessary, to share your nonpublic personal, financial, credit, and any information that you provided (including any computations and assessments produced) with the following entities in order to help DRS provide you with appropriate counseling or guide you to appropriate services: third parties such as government agencies, your lender(s), your creditor(s), and nonprofit housing-related and other financial agencies as permitted by law, including the U.S. Department of Housing and Urban Development.

To prevent unauthorized access, maintain data accuracy, and ensure the correct use of information, we have put in place appropriate physical, electronic, and managerial procedures to safeguard and secure the information we collect online. We limit access to your nonpublic personal information to our employees, contractors and agents who need such access to provide products or services to you or for other legitimate business purposes.

Debt Reduction Services, Inc. complies with the privacy requirements set forth in the HUD housing counseling agency handbook 7610.1 (05/2010), including the sections 2-2 Mc, 3-1 H(2), 3-3, 5-3 F, and Attachment A.5. At all times, we will comply with all additional laws and regulations to which we are subject regarding the collection, use, and disclosure of individually identifiable information.

  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

Please refer to DebtReductionServices.org for details of our services.

  1. Limits: Our services are limited to our normal weekday business hours. We do not provide individual counseling or education services after hours or on weekends, although our education courses are available 24/7.
  2. Fees: We do not charge fees for our financial management counseling and education. However, if you use them, you may have to pay for our Debt Management Program, Student Loan Counseling, Bankruptcy Certificate Services or certain financial education courses (homebuyer education, rental topics, fair housing, predatory lending, and post-purchase-non-delinquency including home maintenance and/or financial management for homeowners).
  3. Records: We maintain records of the services you receive, including notes about your progress or other relevant information to your work with us. You have the right to access and view your records by making a request to your counselor.
  4. Confidentiality: We respect your privacy and offer our services in confidence with the understanding that we may share such information with auditors and government regulators. Certain laws or situations may also lead to disclosing confidential issues, such as those involving potential child abuse or neglect, threats to harm self or others, or court subpoenas.
  5. Refusal of Services: You have the right to refuse services without any penalty or loss.
  6. Disclosure of Policies and Practices: You will be provided our agency disclosure statement.
  7. Sharing of Information: Sometimes we will need to contact other agencies or we may need to share your information, including your records, with other agencies or with regulators. We will do this only if you sign this form that gives us permission except for limited reasons; please see # 5 above for examples of such situations.
  8. Other: You have the right to be treated with respect by our staff, and we expect the same from you in return. We encourage you to always ask questions if something is not clear. We also encouraged you to express your thoughts and advocate throughout our services.

You acknowledge that this authorization will remain in effect for the duration of time that DRS serves as your housing counselor or financial education provider. You also acknowledge that should you wish to terminate this authorization, you will notify DRS in writing.

Disclosure  Statement

NOTE: If you have an impairment, disability, language barrier, or otherwise require an alternative means of completing this form or accessing information about our counseling services, please communicate with your DRS representative about arranging alternative accommodations.

Program Disclosure Form

Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

No Client Obligation

The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

RentalFair HousingPredatory Lending / HOEPAPost-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. creditbudgetinghomeless preventiondebt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

RentalFair HousingPredatory Lending / HOEPAPost-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. creditbudgetinghomeless preventiondebt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).