Home Budget 2

Index
 Introduction
 What is Budget
 Types of Budget
 Personal Budget
 Tools used for
creating a
personal budget
 Following a
Budget
 Home Budget for
Agarwal Family
 Example
 For the month of
January
 Bibliography
Introduction
Drawing up a budget helps you control your household

cost and make it easier to understand how close your
expenses are to your income. Tobegin, gather your
recent bills and credit Card statement to learn what you
have been spending on. Keeping a budget isn’t much fun,
but it will help you figure out how much fun you can
afford.
Putting it Together
Figure out your total take-home monthly income and
compare it to your expenses. If you're running in the red,
or not saving anything for the future, start cutting your
discretionary spending -- no new shoes for a while, or
fewer dinners out. Also, check if your fixed costs are as
fixed as you think. Trading in your car for one with better
mileage, increasing the deductible on your insurance and
refinancing a mortgage can cut your monthly expenses.
What is Budget?
A budget is a list of all planned expenses and revenue. It

is a plan for saving and spending. A budget is a concept
in microeconomics, whichuses a budget line to illustrate
the trade-offs between two or more goods.
Purpose
 Provide a forecast of revenue and expenditure that is,

constant a model of how our business might perform
financially if certain strategies, event and plans are
carried out.
 Enable the actual financial operation of the business
to be measured against the forecast.
Types of budget
1. Sale Budget: The sale budget is an estimate of future

sales, often break down into both units and dollars. It
is used to create company sales goals.
2. Production Budget: Product orientated companies
create a production budget which estimates the
number of units that must be manufactured to meet
sales good. The production budget also estimates the
various cost involved.
3. Cash Flow/Cash Budget: The cash flow budget is a
prediction of future cash receipts and expenditure
for a particular time period.
4. Marketing Budget: The marketing budget is an
estimate of the fund needed for promotion,
advertising and public relation in order to market the
product or service
5. Project Budget: The project budget is a prediction of
the cost associated with a particular company
project.
6. Revenue Budget: The revenue budget consist of
revenue receipts of government and the expenditure
met from those revenue
7. Expenditure Budget: A budget type which which
include of spending data items
What is Personal Budget?
A personal budget is a finance plan that allocates future

personal income towards expenses, saving an dept
repayment. Past spending and personal dept are considered
when creating a personal budget. There are several method
and tools available for creating, using and adjusting a
personal budget.
Several tools are helpful for constructing a personal budget.

Regardless of the tool used a budet accuracy is only as good as
the accuracy of the updated budget data. An old budget that
does not reflect actual income or expences is of little use to a
current budget. Computer generated budget have become
commonly used as they replace the need to rewrite and
recalculate
Tools used thefor
budget everytime
creating thereBudget
Personal is a change.
1. Pencil and Paper: A simple budget can be written on piece of a
paper with a pencil, and optionally a calculator. Such budget
can be organised in three-ring binders or a file cabinet. Simpler
still are the preformatted household budgeting or bookkeeping
forms that create a budget by filling in the blanks.
2. Spreadsheet software: Spreadsheet software ,including
Microsoft exel or I work number calculator, helps to arrange
budget accordingly to need and perform calculating easily with
rudimentary formulas.
For example- Budget spreadsheet are used to keep track of
income and expenses. The major reason most people
discontinue using budget spreadsheet.
Following a Budget
Once a Budget is constructed and the proper are allocated

to their categories, the focus for person budgeting turns to
following the budget. As with allocations, there are various
method available for following a budget.
Envelopes
Envelope accounting or is a method of budgeting where on a

regular basis(monthy,weekly,Etc) a certain amount of money is
set aside for a specific purpose, or category, in an envelope
marked for that purpose
Home Budget for Agarwal Family
Example
Family’s Name: Agarwal

No of family member:6
No of Earning member of the Family:2
No of children studying :2
No of helping hands at home:2
No of telephone lines:1
No of Mobile phones:4
No of vehicles:2
(1 four wheeler, 1 two wheeler vehicle)
House owned
Designation of earning member:
Grandfather: Manager in ICICI Bank
Father: Executive director in Agarwal
company
For the month of January
Category Monthly account

Total income 75000
Taxes 15000
Actual income 60000
House Maintenance 4000
Grocery+Fruits+Vegetble 12000
Milk 5000
Electricity+Water 2500
Conveyance 1000
Clothing 2500
Education+Classes 5000
Entertainment+Presentation 2000
Automobiles 2000
Telophone+Mobile 2000
Home Helper 1500
Repairs 500
Cable+Internet connection 500
Travelling
2000
Laundary
500
Shopping
2500
Stationary 500
Medical 5000
Grand Total 51000
Savings 9000
Yearly savings 10800
Conclusion
 Total Income For Agarwal family is 25000. Tax to

be paid is the 10% of the total income ,that is
25000
 The actual income is(total income-taxes).The
actual income is 225000
 Thesavings after all expenditure is 45000
 The yearly savings for Agarwal family is 540000
Learning Objective
When you have a family, there's a good chance that

money is never far from your mind, even if your
financial footing is solid -- and especially if it's not. No
matter what your status, the objective of a family budget
is to reduce stress and save money by taking control of
your finances.
Identify Waste
Knowing exactly where your money is going helps you
identify opportunities to region in costs. It's not just
about the price of coffeehouse coffee, lunches out and
too-frequent shopping sprees.
Teach Children Financial Responsibility
Children learn by doing and by example, so it's
important to make them part of the process.
Bibliography
 http://en.wikipedia.org/wiki//personal_budget
 http://en.wikipedia.org/wiki/budget
 http://WWW.vertex42.com/exel/personal-monthy-
budget.html
 http://office.microsoft.com/en-us/tempelates/family-
monthly-budget-planner-TCoo1023342.aspx
 https://budgeting.thenest.com/introduction-home-
budget-20563.html

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Index

Drawing up a budget helps you control your household

A budget is a list of all planned expenses and revenue. It

 Provide a forecast of revenue and expenditure that is,

1. Sale Budget: The sale budget is an estimate of future

A personal budget is a finance plan that allocates future

Several tools are helpful for constructing a personal budget.

Once a Budget is constructed and the proper are allocated

Envelope accounting or is a method of budgeting where on a

Family’s Name: Agarwal

Category Monthly account

 Total Income For Agarwal family is 25000. Tax to

When you have a family, there's a good chance that

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