Using a spreadsheet to budget has helped me tuck away $35,000 in emergency savings, buy a house, and more (2024)

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• I prefer to use a spreadsheet to budget instead of an app — it forces me to see where my money goes.
• Every month, my husband and I spend 30 minutes poring over and categorizing our spending.
• Tracking our expenses has helped us identify areas where we can save more towards our goals.
• Read more stories from Personal Finance Insider.

Budgeting is a dreaded chore for many. But I've come to see a lot of value in my monthly budget-spreadsheet session.

A spreadsheet might not be the right budgeting tool for everyone. However, a simple spreadsheet has worked wonders for my family's budget to help us achieve our money goals.

How I use a spreadsheet to budget

I use a simple spreadsheet to track and add up my expenses in each spending category. Although there are more convenient apps out there that would do this for me automatically, my spreadsheet habit works best for me.

A few of the categories in our spreadsheet include travel, housing, transportation, pet, groceries, eating out, fun splurges, and miscellaneous items. The beauty of a budget spreadsheet is that you can create any number of categories to help you drill into the details of your spending.

Once a month, I sit down with my husband and we comb through our spending. We record each expense in the appropriate column; it takes about 30 minutes to complete the process. I'm the first to admit that it felt a bit tedious at first, but this habit has become a critical part of our solid financial foundation.

Why I use a spreadsheet instead of an app

Of course, there are other, more automated ways to track your spending. Apps like Mint can handle moving all of your expenses into categories for you.

But something about the act of recording each expense into a spreadsheet forces me to really see where my money is going. There is no way for expenses to hide in the background if I am physically recording them in my spreadsheet each month.

Not only that, the spreadsheet has become a shared tool for my husband and me. After using this method for two years, I think it has helped us be intentional about what we are spending money on and correct as needed throughout the year.

With this intentionality comes a heightened awareness of our spending choices. Although it didn't happen overnight, we've slowly gotten to a comfortable place with our spending. The spreadsheet has helped us internalize the process of making smart spending decisions that align with our big-picture goals.

Our budget spreadsheet is working for us

Since using a spreadsheet to budget, we've been able to tackle big financial goals by identifying areas where we can cut spending and save more. We've built savings for a down payment on our first home and built a $35,000 emergency fund. Plus, we've even been able to set aside funds for big money goals like retirement.

But we haven't had to stop spending on things that we value, thanks to the monthly reminder of our spending choices.

Is a budget spreadsheet right for you?

A budget spreadsheet is a bit more time-consuming than a budgeting app. You'll need to be willing to commit around 30 minutes a month to pore over your expenses. But the rewards are abundant. In the very first month, you'll quickly see where you are overspending. As you look at each expense, you'll be forced to consider whether or not each purchase was worth it.

If you decide to move forward with a budgeting spreadsheet, you can craft one with categories that suit your needs. You might have specialized categories for things like "fishing" or "knitting." Don't be afraid to drill down into your specific spending patterns to build a spreadsheet that will reflect your real spending choices, including your desires and hobbies.

If you aren't ready to commit to the chore of taking a deep dive into your accounts each month, that's OK. There are plenty of other budgeting strategies available. You just need to find the one that works best for you.