Line Graphs: How to Make and Use Them for Your Finances and More

What Is a Line Graph?

Sometimes referred to as a line plot or line chart, line graphs show the connection between individual values or data points in order to chart changes over time. Perhaps you’ve seen line graphs in use that show the relative value of stock markets over certain periods of time. In this example of a line graph, an increase in the stock market, a specific stock index, or an individual stock’s value will be reflected by an upward slope in the line, while a drop in value will result in a downward trend.

Each line graph is plotted along two axes: The x-axis (horizontal) marks the change in time, while the y-axis (vertical) marks the changes in value of the data being examined.

What Are Line Graphs Used For?

As in the example of the stock market above, line graphs are great for tracking how certain values develop over time and displaying those changes in a clear, easy-to-understand manner. Virtually anything that possesses a changing numerical value can be depicted within a line graph. Because of this versatility, these plots are quite common and are used in a wide variety of contexts—whether for viewing monthly rainfall or daily temperatures in a given area, showing a company’s monthly revenues, or tracking spending and savings as part of your monthly budget.

Pros and Cons of Line Graphs:

• Pros:
  • Can be used to show changes in chronological data
  • Typically show trends and changes in a clear, simple fashion that can be quickly understood
  • Plots with multiple lines can be used to show correlating changes between different values and categories of data
• Cons:
  • Can require more complex smoothing techniques if data regularly fluctuates
  • Graphs with multiple lines may result in issues of scaling

How to Make a Line Graph in Microsoft Excel

No matter what you would like to use a line graph for, spreadsheets in Microsoft Excel make it quite simple to create a line graph that displays your data in an easy-to-read fashion. To create a line graph in a new Excel spreadsheet, you will first need to create a table of the data you wish to plot. In Column A of your spreadsheet, create a list of dates for which you have data. In the example below, Column A lists the months of the year. In Column B of your spreadsheet, list the values that correspond to those dates. In the example below, Column B includes the balance of a savings account at the end of each of these months.

Select the full table of data, including the labeled headings (“Month” and “Savings Balance” in the example). Click the Insert tab, then click the icon showing a line graph. Excel will automatically create a line graph using the data you have selected:

To learn more about formatting and fine-tuning your line graphs, visit this Support guide to line graphs and scatter plots in Excel.

Once you get the hang of it, creating line graphs can become a handy habit for your tracking and maintaining your personal finances. Track your budget using a mix of visual aids, including line graphs, that are easy to reference, and you’ll be able to keep track of the story of your finances, making it that much simpler to tackle—and reach—your personal financial goals.