A budget is simply a plan for your money before the month starts. You do not need finance software: a spreadsheet in Google Sheets (free) or Excel is enough. This guide walks you through a monthly budget you can set up in about 30 minutes, whether you are paid in dollars, pounds, euros or dirhams.
Step 1: Write down your take-home income
Use the amount that actually lands in your bank account after tax. If your income changes month to month, use your lowest normal month so the plan stays safe.
Step 2: List your fixed costs
Rent or mortgage, utilities, phone, internet, insurance, school fees, loan payments and subscriptions. These rarely change, so enter them once. Forgotten subscriptions are a common leak; a subscription tracker helps you find them.
Step 3: Estimate variable spending
Groceries, transport, eating out, shopping and family. Look at the last two months of bank statements and take an average. For a month, log every purchase in a daily expense tracker; most people are surprised by the total.
Step 4: Apply a simple rule
A popular starting point is the 50/30/20 rule: about 50% for needs, 30% for wants and 20% for savings and debt repayment. It is a guideline, not a law. In expensive cities rent alone can take 40%, so adjust and aim to improve a little each month.
Step 5: Plan for big yearly costs (sinking funds)
Annual rent cheques, flights home, car insurance and school fees can wreck a budget if they arrive as a surprise. Divide each yearly cost by 12 and save that amount monthly. The Sinking Funds & Annual Rent Planner is built for exactly this.
Step 6: Pay off debt and build an emergency fund
List debts from smallest balance to largest (the snowball method) or highest interest to lowest (the avalanche method), and pay extra on one at a time. Our Debt Payoff Tracker does both. In parallel, build an emergency fund of 3–6 months of essential costs.
Step 7: Review every month
Spend 15 minutes at month-end comparing plan versus actual. Move money between categories and set next month's targets.
Skip the setup: ready-made templates
- Monthly Budget Spreadsheet for Google Sheets and Excel, with formulas built in.
- Expat Money Planner 2027: budget, savings and money sent home in one file.
- 52-Week Savings Challenge to make saving a habit.
Frequently asked questions
Is Google Sheets good for budgeting?
Yes. It is free, works on phone and laptop, and shares easily with a partner.
What if my income is irregular?
Budget on your lowest typical month and treat anything above it as extra savings or debt payments.
Which currency should I use?
Use the currency you are paid in. The templates work with any currency symbol.
This article is general information, not financial advice.
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