 Hey guys, Shane here. So this video is going to be about how you can make a budget in Google Spreadsheets. That's very simple. Welcome to Wikipedia. A spreadsheet is an interactive computer application for organizations. Off. Hey guys, Shane here. In this video, I'm going to show you how to make a budget in Google Sheets. That's very simple yet very effective and it's going to work for you in 2019 and beyond. So I've tried out dozens of budgets over the years and what I've found is you don't really want to waste your time spending hours and hours budgeting every single week. It's best to just keep it nice and simple, nice and clean and then that way you can really track your expenses and you can start to save. You can start to see where you're spending too much money and that way you can more easily budget your way to success. A link to the template that I'll be using will be in the description down below. It's very simple and clean and I found this template actually from another YouTuber and I really liked it and I think this is the easiest way to get started as a beginner or even if you're very advanced, this is just a very good easy Google template to use. And of course the advantage of using Google Sheets versus using Excel. Once you update it on your Google Sheets, it's in the cloud so it'll update across all of your devices. So if you update something on your phone versus updating something on your computer, it's going to sink throughout all of your devices. Whereas with Excel, it's a lot harder to do that. Sometimes you have to update it on multiple devices. Sometimes you have to write things down on a piece of paper to remember to update it when you go home. So go ahead and click on the template down in the description and we're going to get started right now. Alright guys, so you clicked on the template, you downloaded it. Now what you want to do is you want to go to file and then go make a copy. Okay, once you make a copy, let's just, I'm just going to do it with you. You go okay, you open it and bam, you're ready to go. You can name it anything you want. So let's say broke Bob January 2019, broke Bob January 2019, or actually let's say January 2020. Okay, so before you could edit it, now that you've made a copy of it, you can actually go in and edit everything. So we'll change it here, broke Bob 2020. Perfect, now you can edit it. So as you can see, you don't need to be an expert or anything to use this, but as you can see, there are tabs here at the bottom. One of them is the summary tab. The other one is the transaction tab. Now we'll start with the summary tab. Throughout the entire spreadsheet, you don't want to edit anything that is not tan. So only edit the cells that are tan colored. So you do not want to edit this cell, you'll break everything. If you do that, as you can see, there is a code here, you don't want to mess with that. Only edit these cells throughout the entire spreadsheet. Now, as you can see at the top, the starting balance for let's say January 2020 is $1,000. You can change that to anything you want. Let's say you have $2,000 in your checking account, that's great. And by the way, at the very end, I'm going to go over an example just to show you guys exactly how everything works. Right now, I'm just giving you a general overview of how everything works. So let's change this back to $1,000. Okay, so one thing I really like about this particular one is it gives you these visual indicators of how you're doing. So as you can see, the starting balance for the month is $1,000 as it shows right here. And then the ending balance is $1,500. And I'm going to show you exactly how that was calculated here in a moment. And by the way, if you're watching this and you're from, you know, a different country, you can easily change the dollars. All you have to do is go to file and then go to spreadsheet settings and change it to any country you want. And then you'll see that an option will pop up right here. Once you change it, you want to highlight the entire sheet and click that. So let's say if you change it to Great Britain, you'd see this dollar sign here would change to a pound sign. You'd want to click that after you highlight the entire sheet by clicking this corner button here. And then everything would change to the correct currency. And then you'd want to go to the other tab and do the same exact thing. So let's assume you're watching this from the United States, so it's in dollars. So I've already kind of updated a few things on here just to change it from where it was in the beginning. I put $50 on a bunch of these. So as you can see, this is your planned expenses. So you want to think about how much you're spending every single month. The first ones you want to do are your fixed expenses. So, you know, for instance, house. Generally, you're going to know exactly how much you're spending every month on your rent. So you'd kind of know that. And then once you've gone through your fixed expenses, you want to go through variable expenses. So for instance, how much are you spending on gifts? You know, during December, you might be spending a lot more money on gifts than you would be spending during February. Now, let's say you don't have any pets, for instance, you can always take this out. You can change it to either custom or you can just take it out completely. Put $0 there. And as you can see everything else updated, this was 1700 before. Now it is 1650. Let's go ahead and change it again. Let's say it's $200, you spend a bunch of money on your pets. As you can see this updated to 1850. And you can get as detailed as you want on this. So let's say you're spending a bunch of money on avocado toast. You know, $50 or about $200 a month. You got an avocado toast addiction. You also have a Starbucks addiction. Let's say you're spending on average $150 a month. And then let's say you're spending a bunch of money on strippers as well. So $200 a month. You can find these numbers very easily by either looking at your bank statement, your credit card statement, or if you want to use an app like ment.com, it'll kind of tell you where your money's going. So you can get a really good idea of what you're spending money on every month. And that's what you would put in this planned column. Just realized I spelled avocado wrong. Now, as you probably noticed, the actual column here is a little bit different. So you're probably noticing that the home column here showing $950 versus actual is $1,000. So where did this $1,000 come from? Well, that's where we go over to this tab. And as you can see when we go over to the transactions tab, $1,000 was charged to rent on January 1, 2020. And you can see the description you can say whatever you want. Maybe this is a mortgage for you. You change that to mortgage. The category is in home. So I would definitely go with that category. But as you can see down here, the category has changed. It has avocado toast, Starbucks and strippers. So when you enter a different category in here, it automatically shows up in this column as well, which is very convenient. Now, as you can see over here, this is your income. So let's say this is your normal paycheck from your job, but you also have a side hustle. You can enter that in here. So as you can see, I entered a side hustle of $500 into the custom category and I put it there. And so now that will update on the income. And if you go back to the summary tab, as you can see income was updated to $2,000 and before it was $1,500. And if you want to change what you were planning on making that month. So let's say you were planning on only making, you know, $1,450 a month, you actually got $1,500. Again, you don't want to change any of this over here. On this tab, you only want to change the tan colored cells. So again, we're going to go into this custom category here and we're going to say you expected to make $500 and you ended up making $500. So that's great. Now, as you can see, if we're going back to these graphs here, let's pretend that January is over and now it's February, you're going back and you're looking at your expenses. The starting balance was $1,000. And based off of this, the ending was $2,000 because you made $2,000. So you ended up saving $1,000 this month, which is a 100% increase in total savings. So the next month, you would say, okay, I've got $2,000. And then you'd go through the entire process. And let's say you saved another $1,000 that is a 50% increase in total savings. So with this particular budget, every single time you go to a new month, you would want to make a new sheet. And then you'd go, you know, February 2020, this to 2020. And then you'd start the entire process over again. So now that you have a good kind of general overview of how everything works, I'm going to go ahead and set up a scenario using broke Bob as the example. Okay, so I went through and I detailed, you know, broke Bob's income and his expenses. So I kept the income exactly the same 1500 and then 500 from the side hustle. So the overall is 2000. However, I changed the expenses quite a bit. So as you can see, his total savings went down by 1% because he made $2,000. But he spent $2,025. And as you can see, the representation right here in balance is $1,975. He started with $2,000 in savings and he had to break into his savings in order to pay for everything. Now, if you go down and you look at all of his expenses, he planned on spending $150 on Starbucks and he ended up spending $100 on that. He planned on spending $200 on strippers ended up spending $300 and beer $200 ended up spending $200. And as you can see over here, these are kind of the expenses and I went down and I kind of just added them up a little bit. Obviously these wouldn't be his entire expenses for the full month. But let's say on the 7th of January, he spent $50 for fuel. And then on the 15th, he spent $75 for his electric. And then on the 20th, he spent $200 for strippers. But then he spent another $100 on the very last day of the month because he was super happy. So going over to his expenses, as you can see, the mortgage payment was about the same. On the 2nd, he spent about $200 on beer on a night out. He bought everybody rounds and $150 a month for his puppy. And $50 on the 7th, he bought for fuel. Now there's different types of expenses and this is what I really want to highlight here. So for instance, every time you buy Starbucks, it might be, you know, five or $10. You don't want to put every single Starbucks expense on here. So at the end of the month, what you do is you go through, you look at your statement, and then you add all of the expenses up. And let's say you bought, you know, $5 each Starbucks 20 times, you add it up, you put it as $100. Whereas there's some expenses that are just one time payments, like an electric payment. And that you would just put, you know, on the date that it was taken out. And you would put $75 for that. You're not going to be paying that multiple times a month. So you can kind of do that as you go along. Avocado toast would be another example of something you're probably not going to buy $100 worth of avocado toast in one setting, hopefully. So you'd put that at the end. And the way I like to kind of signify that as I put it as the last day of the month. So I just 130 2020. And that kind of tells me that I added all that up for the month. So as you can see on the 20th, he spent $200 on strippers. And then Bob spent another $100 on strippers on the 29th. So if you go back here, the planned amount that he was going to spend on strippers was $200. But he ended up spending $300 on strippers. And it's very obvious that he's got a problem here. So in this column right here, it'll tell you the ones that you have a problem with. He's spending way too much on strippers. He's spending too much on utilities. So maybe he is running his electric too much. Whereas on avocado toast, he spent a lot less than he was planning on doing. He's really starting to cut back on his avocado toast consumption, which is probably a good thing. And same with Starbucks. So if you look over on beer, he just hit his amount for the month. He spent exactly as much as he planned on spending on the beer. But Bob looks at this and he sees that, you know, his total savings went down. He's not very happy about this. So he looks down here and he sees what he can cut back on. So it's February 1st. He's looking over his January statements and he thinks to himself, I want to save $500 a month. Well, if he cuts back on beer and strippers, he'll be most of the way there. So let's go back here and let's say he cut out Starbucks, avocado toast, strippers. Yeah, so he cuts all those out. Let's go back here and see how much he ended up saving. He ended up saving $475. So that's pretty close to his goal of $500. And then let's say he goes back and he only spends $50 on his electricity. Bam, he hit his goal of $500. So obviously this is a very, you know, simple example. Most people are not going to be spending that much money on strippers and beer and avocado toast and Starbucks. But you will be able to very easily see what you're spending too much money on if you use this method. After a few months, you'll have a very good idea. Chances are it's going to be eating out. Maybe you're spending a lot of money on a car payment. Maybe you're spending a bunch of money on Amazon late at night. You're ordering a bunch of stuff that you don't need. It'll be very, very easy for you to see where your money is coming in and where it's going out. And it'll be easy for you to plan for the future if you use this very simple template for Google Sheets. Alright, I hope everything made sense in the video. Let me know down below if anything didn't make sense. I know I was a little scattered in this video and I apologize for that. But yeah, I hope everything made sense and I hope it helped you out. This is a very simple sheet that you guys can use. It's also very easy to edit if you want to. I know when I started, I started off with a very simple budget and then I moved to an advanced budget. And then I kind of went back to a simple budget because once you get it down, you don't really need to get that advanced. Because you kind of know what you're spending your money on every month. So you don't need to get super granular with it. But anyways, like, comment, subscribe down below. I work really hard on these videos. Also hit the little notification bell. And I post a lot of videos on this channel about different careers you can go into be successful, how to save money, how to invest your money, all that good stuff. So I hope you have a good day and until next time.