How To Make A Budget In Excel For Better Household Finances

Sophie Barnard

CEO at Red Tree Finance

17th July 2023


1. Gather your information

First, you need to gather all of your financial details. This includes how much money you get each month, like an allowance, your salary, your total spending, monthly expenses, any debts you have, and any savings, so you can keep track of your cash flow. Having all this information will help you make a realistic short and long term budget.

2. Open Excel and set it up

Now it’s time to create a budgeting spreadsheet in Excel. Open Microsoft Excel on your computer and start a new workbook. You’ll see a blank sheet. Rename one sheet as “Budget” and another sheet as “Summary.” This will make it easier to keep everything organised.

3. Track your income & expenses

In the “Budget” sheet, make a table with two columns. In the first column, write down all the ways you get money, like your allowance or any jobs you do. In the second column, write down how much money you get for each source.

Below the income table, create another table with two columns. In the first column, write down different categories for your total expenses, like food, transportation, entertainment, and so on. In the second column, write down how much money you think you’ll spend in each category. Make sure to measure for when emergencies arise. Ensure you have an extra sum of money for when unexpected expenses occur

4. Let Excel do the maths

Now comes the fun part! In the “Summary” sheet, create a table that looks the same as the one in the “Budget” sheet. In the last row of the “Budget” sheet, use the formula “=SUM” to add up all your income and expenses and press enter. This way, Excel will automatically calculate the totals for you. Excel should automatically update this sum in the spreadsheet when the figures change throughout your budgeting experience.

5. Visualise your budget

Excel has some cool features that can help you see your budget visually. You can use charts and free budget templates to show how much money you’re earning and spending in each category. It makes it easier to understand where your money is going and where you might want to make changes. Visual representations help you manage your day to day finances and help you have a better understanding of your money management. You can personalise your budget with colours and styles, and even make a conjoint budget with other members of your household!

6. Set savings goals

Excel can also help you track your savings goals. Create a section in the “Budget” sheet where you can write down how much money you want to save. Use a formula to calculate how much you need to save each month. This will help you stay motivated and see your progress over time.

7. Update and review

Remember to update your budget regularly. Whenever you spend money, write it down in the “Budget” sheet. This way, you’ll always have an accurate picture of your finances. Review your budget regularly to see if you’re sticking to it and if there are any areas where you can save more money.

Once you’ve been implementing your budget for a while, take some time to analyse how well you’re sticking to it. Look for any areas where you may be spending more than you planned or areas where you have extra money left over. This analysis will help you make adjustments to your budget, reallocating funds to align with your priorities and financial goals.

8. Seek Ways to Save

Continuously explore opportunities to save money within your budget. Look for ways to reduce expenses, such as finding cheaper alternatives for certain products or services, comparing prices before making purchases, or cutting back on non-essential items. The more you can save, the more you’ll have to put towards your savings or other important financial goals.

Read more: How to save money on a low income – 10 ways

Managing your expenses easier with Red Tree Finance

By organising your income, expenses, and savings, you’ll have a better understanding of your finances. Planning budgets help to outline financial goals for your future. At Red Tree Finance, we offer cash loans up to $5000 so you don’t have to stress about financials. You can receive an instant loan online with the money in your account on the same day. If you have any questions or need assistance, please don’t hesitate to contact us online.

How to make a budget in Excel: FAQ

The formula is “=SUM(total funds/total expenses)’. This will help you find how much money you are earning compared to what you are spending and help you find a balance.

Some of the most common budgeting mistakes are:

  • Forgetting to plan for unexpected expenses including car repairs and medical bills.
  • Over-estimating or under-estimating your total income.
  • Setting goals that are too hard to reach.

The hardest part is sticking to your expense budget. It can be tough to say no to impulse buys and stick to your spending limits. It also takes effort to track your expenses and review your budget regularly. But with practice, it gets easier, and you’ll reach your financial goals faster.

The information provided in this blog is of a general nature and is provided without considering your specific objectives, financial situation, or needs. It is intended for informational purposes only and should not be relied upon as financial, investment, or other professional advice.

Before making any financial decisions or taking action based on the information presented, you are strongly encouraged to assess its appropriateness in light of your individual circumstances. Red Tree Finance does not intend to provide personalised financial advice, and you should seek independent financial, legal, tax, and other relevant advice tailored to your unique situation.

How much would you like to borrow?

Loan amount


Repayment frequency

Your monthly repayment

Loan term
12 months
Interest & Fees
Total to pay

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The above uses a comparison rate of 47% and upfront establishment fees of $420.



People also read:

19th June 2023

How To Organise Bills And Pay Them On Time

Are you tired of scrambling to pay bills at the last minute? We know that bills and late fees can be stressful, that’s why we’re here to help! In this complete guide, we share our best tips and tr...
Read more
10th May 2023

How To Save On Utility Bills In The Winter: 10 Tips

Getting hit with a hefty utility bill is never a pleasant feeling. In fact, the average Australian is expected to increase their average electricity usage over 14% during wintertime. That works out to...
Read more
20th April 2023

10 Things To Sell To Get Money Fast

Are you looking for some quick cash to fund your next adventure or pay off some bills? Cash loans are one solution, but there are also plenty of items around your house that you can sell for easy mone...
Read more

Ready to apply for a loan?

Apply to borrow up to $5,000 fast. Complete the online application in less than 5 minutes.

Apply Now