Budget spreadsheet or app: which one suits you?

How to set up a monthly budget spreadsheet

If you go with a spreadsheet, there's no need to make it complicated. These columns are enough:

• Date
• Description: what you bought or paid for
• Category: groceries, transportation, eating out…
• Amount in dollars
• Payment method: cash, debit card or credit card

At the top, a row with your income for the month, for example $3,000; at the bottom, a summary that adds up each category. With the SUMIF formula per category, you can already see where your money goes and how much you have left.

The upsides and downsides of a spreadsheet

A spreadsheet is free, flexible and yours: you can add columns, charts and formulas however you like. For many people, building one is already a good way to learn how their money moves.

The hard part is the day-to-day. Spending happens out and about, not in front of a screen: if you log at night or on the weekend, small expenses get forgotten and installments or card charges get mixed in with everything else. On top of that, a formula breaks easily and nobody warns you when a bill is due.

The upsides and downsides of an app

An app lives on your phone, so you log on the spot, in seconds. It can remind you of due dates and build charts and reports without you writing a single formula.

In return, you adapt to the way it organizes things, and some features may cost money. It's also worth asking where your data is kept and whether you can take it with you whenever you want.

How to choose

There's no single answer. These questions usually help:

• If you enjoy formulas and sit down to log your spending regularly, a spreadsheet may be all you need.
• If you tend to forget to log, pay a lot by card or want reminders, an app usually makes it easier.
• You can also combine them: log in the app and move the data to a spreadsheet for your own analysis.