#GOOGLE SPREADSHEET FOR BUDGET DOWNLOAD#

Total up your income at the bottom of the column using the Sum function.Īs a final thought, I recommend only including four weeks’ after-tax income from your primary job. Once you reach financial independence, regardless of your age, you can choose to keep working or you can storm out in a blaze of glory and go do something else with your life. The ultimate financial goal is to build enough passive income that you can retire. This includes passive income sources like dividends from stocks, bond payments, net cash flow from rental properties, and income from indirect real estate investments. If you work a side gig, include that on the next line or lines if you work more than one side job.įinally comes investment income. Only include your after-tax income to keep the numbers practical and realistic. List that first, and if you’re married and your spouse works, add a second line for their income. You likely have a primary job or gig as the main source of your income.

At an FI ratio of 100%, you reach financial independence, working becomes optional, and you can retire if you like.ĭocumenting your income tends to be easy because you probably only have a few sources of it. It simply refers to the percentage of your living expenses you can cover with your income from investments. FI ratio stands for “ financial independence” ratio, and it sounds more complex than it is. Every month, I measure my savings rate, my investable net worth, and my FI ratio (also called FIRE ratio). I personally have three numbers I track - and I recommend you track - although you may have additional goals as well. Simultaneously, the simplest and the most complex section involves your long-term progress. Just enter “=Sum(” and then highlight the cells you want totaled. You can use the Sum function to automatically add up each column for you. You’ll see this listed out in my template, as an example.Īt the bottom of each of these sections, add the totals. To automatically calculate the difference between the two numbers, subtract the planned number from the actual number. Thus, you only have to enter the “actual” column numbers each month to see how you performed. You only have to enter the planned amount into the template once, and you can set the template to automatically calculate the difference. Start with the planned amount, then list the actual amount you spend, and finally the difference between the two. Start out with four umbrella sections in your budget: income, savings, expenses, and long-term goal progress.įor the income, savings, and expenses sections, include three columns beside each line item. It’s one of the reasons why Dave Ramsey’s Baby Steps are so effective for the average person - they’re simple and easy to understand. Most importantly, budgets should start simple and only add complexity as needed.

#GOOGLE SPREADSHEET FOR BUDGET DOWNLOAD#

So don’t just skip to the end to download the template.

Before you do, though, it’s important you understand why I organized my template the way I did because I take a different approach than many personal finance experts. You can create a budget in Google Sheets from scratch, or you can use the template we provide below. But in my experience, this method creates simple clarity by letting you an view all of your monthly expenses and income on one page.

If you give it a committed try and just don’t like the results, you can always try alternative budgeting tactics. No one says you have to create a traditional budget with a spreadsheet. In other words, don’t stress about writing your own budget. It’s not rocket science, and the only math required is at a second-grade level. Creating a Budget in Google Sheetsīudgeting doesn’t have to take much time, either upfront or on a monthly basis. But you get the idea: If you want to build wealth, you need a written b udget and financial plan. Schwab goes on to list many more financial disparities between those who plan their budget and financial future and those who don’t. And 56% of planners feel “very confident” about reaching their financial goals, versus 17% of nonplanners. Fully 74% of planners automate a portion of their income to go to savings each month, compared with 25% of nonplanners. Among planners, 68% keep an emergency fund, compared to 26% of nonplanners. A worrying 38% of “nonplanners” can say the same. Of the “planners,” 78% say they pay their bills on time and save money each month. Those who have a written plan are in vastly better financial shape than their planless peers. Only 28% of Americans have a written financial plan, according to Charles Schwab’s 2019 Modern Wealth Index study.

Google spreadsheet for budget