Is a Budget Spreadsheet Still Useful in the App Age?

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August 1, 2025August 4, 2025

Categories: Beginner Finance & Money Basics

How to Make a Budget (Even If You Hate Numbers)

Let’s cut to the chase. Budgets sound boring. They remind us of spreadsheets, limitations, and something that only accountants or incredibly frugal people enjoy. But here’s the deal: learning how to make a budget is one of the most empowering things you can do with your finances. Whether you’re living paycheck to paycheck or just want to squeeze more value out of every dollar, this guide is for you.

Welcome to Beginner Finance & Money Basics with me, Thomas “Tom” Bradley — your financially confused-turned-wise older cousin type. No suits, no jargon, no shame, just real talk about real money. Let’s build your first budget, step-by-step. I promise, it’s not as scary as it sounds.

What Is a Budget, Really?

You might think of a budget as a restriction. But that’s like saying a map is a trap. A budget is just a plan — a tool to help your money go where you want it to go, instead of wondering where the heck it went.

When done right, budgeting works for you. It tells you if you can afford that concert, when you’ll finally crush your credit card debt, and how long until your dream vacation becomes more than a Pinterest board.

The Budgeting Mindset: It’s Not About Deprivation

Before we dive into calculators and categories, let’s get one thing crystal clear:

Budgeting is not a punishment.

Think of it like a GPS for your money. It helps you get where you want to go—faster, smarter, and with fewer “oops I’m broke again” detours.

What You Need Before Building a Budget

Here’s everything you need to get started (no fancy tools or finance degree required):

A stable internet connection (because we love digital tools)
Your income information (salary, side hustle, dog walking gig – all of it)
Your monthly expenses (yes, even that $6 coffee every day)
A willingness to be kinda honest with yourself

Ready? Let’s budget.

Step 1: Know Your Income (a.k.a. What’s Actually Coming In)

Start with your net income — that’s your take-home pay, after taxes and fun things like health insurance and retirement deductions (which you should totally have, but we’ll get there in another post).

If you’re salaried, it’s easy — check your pay stub. If you’re freelance, add up your monthly average from the last 3 months. If it varies wildly, err on the low side. Better safe than ramen noodles for 12 days.

Step 2: Track Your Expenses (Yes, It’s Eye-Opening)

This part is usually where the “fun” begins. (Okay, it’s not fun, but it’s necessary.) You need to know where your money is currently going. Do this for one full month. Categorize your expenses into two main buckets:

1. Fixed Expenses

Rent or mortgage
Utilities
Insurance
Subscriptions (Netflix, Spotify, that gym you never go to)

2. Variable Expenses

Groceries
Dining out
Shopping
Gas and transportation
Happy hour and impulse buys (ahem, Amazon)

You can use budgeting apps or a simple spreadsheet. The key is to be real with yourself — no rounding down!

Step 3: Set Your Financial Goals

This is where things get spicy.

Your goals are what make budgeting motivating. Are you aiming to:

Pay off credit card debt?
Save for a house?
Build an emergency fund?
Get rich enough to never fly economy again?

Whatever the goal, write it down. Make it specific and realistic. For example: “Save $5,000 for a trip to Japan by next spring.” That’s better than just saying, “save money.” Precision = action.

Step 4: Choose a Budgeting Method That Works for You

Here are three popular (and beginner-friendly) budgeting styles you can try:

1. 50/30/20 Rule

Simple and solid. You split your income like this:

50% to needs (rent, food, bills)
30% to wants (movies, pizza, overpriced matcha)
20% to savings or debt

Great if you’re not a detail freak and want a big-picture plan.

2. Zero-Based Budget

A bit more work, but more control. Every dollar gets an assignment — until your “leftover” is zero. Earn $3,000? Budget every cent of that towards your categories. No more “extra” money accidentally escaping your wallet.

3. Envelope System (Digital Counts Too!)

Allocate spending money into envelopes (physical or digital). When the envelope’s empty, that’s it for the month. This keeps overspenders (like I used to be) in check.

Step 5: Make Adjustments Monthly

Budgets are living creatures. That means they evolve —and they should.

Maybe you overestimated your will to cook every night or forgot your dog gets a $75 haircut. No judgment. Tweak your plan each month until it reflects your lifestyle and goals.

Pro Tip:

Set aside time each week to review your budget. Sunday mornings with coffee or Friday night before takeout — whatever works for you.

Step 6: Build Emergency Fund Early

Before diving deep into investing or aggressive debt payoff, prioritize your emergency fund. Aim for at least $1,000 to start or cover 1 month of expenses. Eventually, 3–6 months is ideal. Life throws curveballs, and this fund is your glove.

Common Budgeting Mistakes (and How to Dodge Them)

Being too strict — Don’t cut all fun. You’ll rebel, trust me.
Forgetting irregular expenses — Birthdays, car repairs, dentist. Add them in.
Skipping reviews — You can’t manage what you don’t monitor.

Tools That Can Help

You don’t need fancy software to budget — but the right tools can help. Try:

YNAB (You Need A Budget)
Mint
EveryDollar
Good old-fashioned Google Sheets

Takeaways: Budgeting Doesn’t Suck

Look, I used to hate budgeting too. It felt like homework and deprivation combined. But once I understood it’s just a plan — my plan — everything changed. I’m still not perfect at it, but I always know where my money’s going. That feeling? Priceless.