What is an example of a personal budget?

What is a personal budget

The first step in organizing your finances is to create a personal financial budget. But what is it? It is a system that allows you to plan how you are going to spend every peso that enters your economy before the money is available in your account.

An important clarification: if you have credit cards and use them frequently, you should consider the total amount to be paid on your statement as a fixed expense. Since everything you spend with the card becomes a fixed expense for the following month.

Recording daily expenses is a very important financial habit to keep your finances in an orderly manner. When you set up a budget, it is likely that you can easily identify fixed expenses, however, variable expenses are often a big unknown. Therefore, to know them in detail it is necessary to start recording all your expenses every day, without exception.

In order for your expenses record to be efficient and then you can analyze the information, we recommend you to do it through an application or an excel file in your cell phone. We do not recommend writing down your expenses in an agenda or in your cell phone notes because it takes a long time to transfer them to an excel file to be able to effectively control how much you spend.

What is a personal monthly budget?

What is a personal monthly budget? It is a financial plan where you determine what expenses and income you have each month. A good way to know how much money you have on a monthly basis.

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What is a personal financial budget?

The first step in organizing your finances is to create a personal financial budget. But what is it? It is a system that allows you to plan how you are going to spend every peso that enters your economy before the money is available in your account.

What is a basic budget?

It is the one that analyzes data for the amount of projected sales, sales prices, purchases, inventory quantities, administrative expenses that make up a series of financial indicators to determine the direction of the company.

Monthly personal budget example

Budgeting is listing all the possible cash inflows you will have in a period of time and all the expenses that will occur during that same time. Planning your budget is a financial technique that you should apply to all aspects of your life.

As we saw in the chapter on Home Economics, if you subtract your expenses from your income, you will be able to know if the money coming in will be enough to cover the expenses coming in or, on the contrary, if your income is less than the expenses you planned to make. This is called cash flow.

What is the importance of making a personal budget?

A personal budget allows for a better organization at the time of managing resources and making an efficient planning of these, since it is a way of expressing the financial future that the person who prepares it expects to have.

What income is in a personal budget?

What income is in a personal budget? If you have only one job, put your net salary, vacation bonus, Christmas bonus and additional income in the corresponding months, for example: Salary: from January to December, every week, fortnight or month. It depends on how your payroll is deposited.

What is the cash budget?

The cash budget, also known as projected cash flow, is a budget that shows the forecast of a company’s future cash inflows and outflows (cash in cash), for a given period of time. cash) or, apply for further credit.

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Example of a personal budget in excel

In order to be able to save, we must start by having order in our personal finances. Today we are going to help you in this individual administration, so that in the not too distant future you can have peace of mind and financial freedom with your money.

It is a financial plan in which you have visibility of the income you have in the present and the future, as well as the expenses you are going to make. In conclusion, the personal budget is a document where you can see what money comes in and what goes out in a given period.

Once you have achieved this personal management, we suggest you start saving in our Afore SURA app, which is made to give you control of your money and above all to grow your savings with consistent returns and thus achieve your goals.

How does budgeting affect your personal finances?

The main benefit that budgeting offers to personal finances is to control the financial situation, this activity allows us to reduce financial risk, which is always implicit in any task that involves the use and management of financial resources.

What is a family budget and an example?

A family budget is a document in which we project income (for example, what we will earn through our employment or business) and expenses, such as expenses to cover family needs or debt payments.

What is the frequency for preparing the cash budget?

There are different time periods for which a budget can be made. Typically, they are done on an annual, semi-annual or quarterly basis; that is, you are looking at the future of your business for the next 3 or 6 months or for the next year, although some companies prefer to budget on a rolling basis.

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How to make a personal budget

First of all, you will need to quantify how much money you receive on a regular basis. Generally, you will have your paycheck, but you can also get other additional income, such as benefits, possible tax refunds, rent payments, odd jobs… Think about the next 12 months to foresee what can increase your positive balance. You might also come up with some ideas for new income.

Now it’s time to subtract, writing down all the regular and one-time expenses you foresee. You will have your housing expenses, food, transportation, vacations, clothes… Some of them will come to mind easily, but it is advisable to be meticulous.

This will allow you to differentiate the essential expenses from the superfluous ones and make decisions that will make it easier for you to cut back.    Maybe one less dinner at a restaurant each month will provide you with significant savings.

Don’t forget that life is full of unforeseen events. A dentist, an appliance repair or an unavoidable wedding could keep you from your goals if you haven’t taken them into account. Set aside a line item for these likely expenses.