how to add expense categories in google sheets
IN SUMMARY
To add expense categories in Google Sheets, create a new column for categories, use data validation to create a dropdown list, and then reference that list when adding transactions. This allows you to easily categorize expenses and track spending by category.
Creating the Expense Categories Column
Create a new column in your spreadsheet specifically for listing your expense categories. This column will serve as the source for the dropdown list you'll create later.
In the new column, enter all the expense categories you want to track, such as 'Rent', 'Groceries', 'Utilities', 'Transportation', etc. Make sure to enter each category in a separate row.
Consider grouping similar categories together or ordering them alphabetically for easier reference and management. You can always add, remove, or modify categories as needed.
Setting Up the Dropdown List
Add a new column in your spreadsheet where you'll record your expense transactions. This is where you'll use the dropdown list to categorize each expense.
Select the entire transactions column, then go to 'Data' > 'Data Validation' > 'Criteria' > 'List from a range'. Select the range containing your expense categories to create a dropdown list in the transactions column.
In the data validation settings, you can choose to display the dropdown as a traditional arrow or as a 'chip' format. You can also enable input help text for better user experience.
Recording Transactions and Tracking Expenses
In the transactions column, select the appropriate expense category from the dropdown list for each new expense you want to record.
Depending on your setup, you may have additional columns for recording the date, amount, description, or other details related to each transaction.
With your expenses categorized, you can use formulas and pivot tables to summarize and analyze your spending by category, helping you better manage your finances.