Why You Should Budgetĭuring a budget planning exercise, you’ll soon start to realize that there are certain places and/or purchases that repeat frequently and therefore result in a higher monthly cost than you might think. The best way to truly take control of your money and plan a smart budget is to understand what your current spending patterns are. Take your time to analyze every transaction. For example, if you’ve spent a total of $1,200 on Recreation in the past six months, your monthly cost for recreation is $200 ($1,200 / 6 = $200). If you don’t know what you are currently spending on a monthly basis, the best way to find out is to take your last three to six months bank statements (including credit cards and store cards) and spend some time categorizing every outflow or payment into the categories as per our Budget Planner.Īdd the total per category and then divide this total by the number of months you used. Add your monthly costs (or yearly costs if asked) into each relevant category and let the budget calculator do its work. The Input section lists the different categories. Use your best judgment in your situation to what you deem essential or non-essential. This provides you with the perfect opportunity to consider how you can improve your spending, and work towards your long-term wealth.ĭepending on your lifestyle and situation, different categories can be classified as essential or non-essential. Using the budget planner, you can compare your spending on discretionary costs (which are costs non-essential to your livelihood) and then essential costs. Other categories (where most of your disposable income is likely going) include Entertainment, Vacation & Travel Expenses and more. The categories include your essentials such as Groceries, Home Rent, Fuel & Transit, Vehicle Lease and Personal care. The different categories provide an accurate indication of what your money is spent on most. The budget calculator is designed to give you a clear visual representation of your monthly equivalent expenses. Have you ever found yourself at the end of the month, looking at your bank balance, and asking yourself: Where has all my money gone? Use our free budget planner to clearly see where your hard-earned money has been spent. One of the most important aspects of managing your money is knowing where your money is going. The Budget Planner Calculator is a free tool for anyone who wants to take their personal finance to the next level.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |