how to prepare a budget?

Answer 1

I have an Excel worksheet I've been using for 10 years. Email me your addy and I'll send it to you!

Answer 2

The simple form of budget is starting with income first. List out all the income sources such as wages, interest income, allowance from parent and sales for a specific period of time (e.g. a week, a month, or a year). Then list out all the necessary expenses will be spend on that period of time. Try to distinguish the difference between what a person needs and wants, then avoid spending on the wants (e.g. luxury products...). Another important key to a good budgeting is set up a lum sum for saving. I think this is the simple form of budge. Here's an example for a simple budget:

For the month ending 1/31/07
Income: Wages - $500
Allowance from dad: $200
Interest from saving account: $1
Total income: $701

Expenses: Transportation - ($100)
(Needed) Meals - ($300)
Grocery - ($30)
Miscellaneous - ($20)
Cell phone monthly fee - ($30)
School supplies - ($120)
Total expenses: ($600)

Amount saved: $101
LIst of needs: New jacket for winter - Est. ($80)
List of wants: A new MP3 - Est ($75)
Japanese dinner - all you can eat - ($30)

Then set up the prorities between needs and wants. Spend the need before the wants. Try not to leave a $0 balance or deficient on the budget.

Answer 3

You'll notice that everyone has their own formulas for budgeting so what is right for one won't work for another.

First of all a budget is a plan to your finances like a calendar is to your time. It should be flexible. There are times that things come up that need to be alloted for. Just like your calendar has only so many hours in a day, week or month, your budget only has so many dollars from which to work.

What are your expenses?
What is your income?

What happens if one category is altered... unemployment, car trouble, medical leave??? You need to plan for expected and unexpected expenses.

Everyone has different needs and wants but the basic categories include: housing, transportation, food, savings, insurance, debt, and disposable income. Rank your needs in priority to arrive at your disposable income and then use judgement in getting as much value as you can from each category. For example, some people would rather pay more for a stunning suburban home than for driving a brand new car loaded with options while others may opt for the car and live at home with parents until they are 50. What's most important to you and what can you afford???

I'm not being specific only because I don't know your income, your lifestyle, or your goals in life.

I would suggest that off the top of your income you set aside 10% of take home for long-term savings and 10% of your income for short-term savings. The next thing is your existing needs in life: rent or mortgage, utilities, food, car, gas, etc. Whatever is left should be balanced between getting out of debt you may have and having disposable income to avoid further debt. It makes no sense to pay 12-20% interest on a credit card for purchases that you really don't need to accrue. So you want to go out to eat? You have the choice between a $30 dinner at Red Lobster or a $5 trip to McDonalds. If you are paying cash, you'll make the right choice... if on credit, you'll opt for the splurge. It's all about value!!!

Answer 4

Easy - Best to calculate Monthly.

Income -

VS

Expenses:
Pension or IRA - from your check at work
Taxes - Federal, State, Local from your check
Medical Insurance - and dental, vision expenses, prescriptions
Rent or Mortgage
Taxes -for house
SAVINGS - don't forget that rainy day!
Utilities
Phone
Cell Phone
Car
Car Insurance
Gas & other car maintenance
Homeowner's or Renter's Insurance
Medical Insurance
Food - and other groceries
TV or Cable Bill
Internet Service
Credit Cards - Average say $100, $200, $500/month - depending on what you're spending now
Dating
Other transportation costs -if you take the train,
Pets - if you have any.
Slush Money - you have to have cash in your pocket everyday

Leftover - goes to Savings

GOD bless us always.
MBA-Boston Univ.
CPA-retired

Answer 5

Personal budget: one paycheck per month/or two/or every week. Look at your rent, bills, etc. That also includes car insurance, gas, oil change (every three months), And, if you can afford even once a month, a meal out of the house. Otherwise, plan for the food you need for the month. It is a really good idea if you make up a menu for a month at a time. That way, if you are able to shop right, you should have all the ingredients you need, and say, if you planned tacos on a Mon. night, but want spaghetti, you have the stuff you need. You can make the tacos another night. Most importantly is to pay the rent, your bills, food, other neccessities, by their due dates. If you get paid once per month, whatever is left over after rent and bills, divide by four-weeks the amount you have to spend per week. Twice a month-plan on having your rent money available out of the last check of the month to pay rent on the first of the next month. Once a week pay-accordingly. Also, if your budget will allow it-please try to put at least $5. into savings each paycheck-or even each month. It's only a little, but it adds up. A helpful hint--something I learned from my father that he did years ago-each day (you will need a big jar for this) at the end of the day, if he broke a bill even one dollar, he would put the change into this jar every night. Yes, he would have a small amount of cash on him daily, and every bill he broke (whether 1, 5 10, 20, his change (especially pocket /coin change) went into this jar. He would, at the end of the year, roll up the coins, get the cash for them at the bank, and tell my Mom and I to go shop from Christmas, and we had a good amount of monies to shop with. One year I remember him having 400$ to split between Mom & I-and he told us to go shop. We did. That was many years ago. Also, to keep the change jar, I'm sure it would come in handy for you, if you needed a few coins for a toll booth, or to buy a pop or whatever. But if you could hold onto it till the end of the year,-you should have some money to spend for Christmas, or whatever. Take care.