While you can make a budget by hand or by using one of the many applications or software available, a spreadsheet is one of the most effective ways to create a budget. To make a spreadsheet, you must first download a software program such as Microsoft Excel. Then you’ll need a list of fixed monthly expenses, variable monthly expenses, and income records for everything you earn. Next, decide how you wish to organize your spreadsheet, whether that is by including all information in one sheet or creating several tabs within the sheet. Then, track your income sources as well as your expenses. Compare the two, and continue to track your spending and saving habits within the sheet. There are also several premade sheets available online if you do not wish to start from scratch.