MATHEMATICS PROJECT :

HOME BUDGET

ADITYA GIDDE
XTH
ROLL NO. 12
ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my mathematics teacher
Ms. Harshali champanerkar as well as our school principal who gave me the
excellent opportunity to do this wonderful project on the topic Visual Proof of
Pythagoras’ Theorem, which also helped me in doing a lot of Research and I came
to know about so many new things.

I am really thankful to them. Secondly, I would also like to thank my parents and
friends who helped me a lot in finishing this project within the limited time. Just
because of them I was able to create my project and make it good and enjoyable
experience.

I am making this project not only for marks but to also to improve my knowledge.

THANKS AGAIN TO ALL WHO HELPED ME.

CONTENTS
- WHAT IS BUDGET
- TYPES OF BUDGET
- COMPONENTS OF BUDGET
- WHAT IS PERSONAL BUDGET
- TOOLS USED FOR CREATING A PERSONAL BUDGET
- FOLLOWING A BUDGET
- HOME BUDGET FOR PATEL FAMILY
- EXAMPLE
- BAR GRAPH
- PIE CHART
- PIE CHART
- CONCLUSION
- BIBLIOGRAPHY
WHAT IS BUDGET?
A budget is a financial plan for a defined period, often one
year. It may also include planned sales volumes and revenues,
resource quantities, costs and expenses, assets, liabilities and
cash flows. Companies, governments, families, and other
organizations use it to express strategic plans of activities or
events in measurable terms.

A budget is the sum of finances allocated for a particular

purpose and the summary of intended expenditures along with
proposals for how to meet them. It may include a budget
surplus, providing money for use at a future time, or a deficit
in which expenses exceed income.
TYPES OF BUDGET
Your final budget is usually a combination of inputs from several other budgets that are prepared at a
departmental level. Let’s look at the different types of budget and how they contribute:

1. Master budget
A master budget is an aggregation of lower-level budgets created by the different functional areas in an organization. It uses inputs from financial
statements, the cash forecast, and the financial plan. Management teams use master budgets to plan the activities they need to achieve their
business goals. In larger organizations, the senior management is responsible for creating several iterations of the master budget before it is
finalized. Once it has been reviewed for the final time, funds can be allocated for specific business activities.
Smaller businesses often use spreadsheets to create their master budgets, but replacing the spreadsheets with efficient budgeting software
typically reduces errors.

2. Operating budget
An operating budget shows a business’s projected revenue and the expenses associated with it for a period of time. It’s very similar to a profit and
loss report. It includes fixed cost, variable cost, capital costs, and non-operating expenses. Although this budget is a high-level summary report,
each line item is backed up with relevant details. This information is useful for checking whether the business is spending according to its plans.
In most organizations, the management prepares this budget at the beginning of each year. The document is updated throughout the year, either
monthly or quarterly, and can be used as a forecast for consecutive years.

3. Cash budget
A cash flow budget gives you an estimate of the money that comes in or goes out of a business for a specific period in time. Organizations create
cash budgets using inferences from sales forecasts and production, and by estimating the payables and receivables.
The information in this budget can help you evaluate whether you have enough liquid cash for operating, whether your money is being used
productively, and whether there is and whether you are on track to earn a profit .
4. Financial budget
Businesses draft this budget to understand how much capital they’ll need and at what times for fulfilling short-term and long-
term needs. It factors in assets, liabilities, and stakeholder’s equity—the important components of a balance sheet, which
give you an overall idea of your business health.

5. Labor budget
For any business that is planning on hiring employees to achieve its goals, a labor budget will be important. It helps you
determine the workforce you will require to achieve your goals so you can plan the payroll for all of those employees. In
addition to planning regular staffing, it also helps you allocate expenses for seasonal workers.

6. Static budget
As the name suggests, this budget is an estimate of revenue and expenses that will remain fixed throughout the year. The line
items in this budget can be used as goals to meet regardless of any increases or decreases in sales. Static budgets are usually
prepared by nonprofits, educational institutions, or government bodies that have been allocated a fixed amount to use for
their activities in each area.
Components of a budget
If you are starting a new business, the first budget you create might be a challenge, but it is a good learning experience
and a good way to understand what works best for your business. The best place to start is getting to know your budget
components. Initially you may need to make several assumptions to get your budget started.

1. Estimated revenue
This is the money you expect your business to make from the sale of goods and services. There are two main
components of estimated revenue: sales forecast and estimated cost of goods sold or services rendered. If your
business is more than a year old, then your experience will guide you in estimating these components. If your business
is new, you can check the revenue of similar local businesses and use those figures to conservatively create some
estimated revenue numbers. But whether your business is new or old, it is important to stay realistic to avoid over-
estimating.

2. Fixed cost
When your business pays the same amount regularly for a particular expense, that is classified as a fixed cost. Some
examples of fixed costs include building rent, mortgage/utility payments, employee salaries, internet service,
accounting services, and insurance premiums. Factoring these expenses into the budget is important so that you can set
aside the exact amount of money required to cover these expenses. They can also be a good reference point to check
for problems if your business finances aren’t going as planned.
3. Variable costs
This category includes the cost of goods or services that can fluctuate based on your business success. For example, let us assume you
have a product in the market that is gaining popularity. The next thing you would like to do is manufacture more of that product. The
costs of the raw materials required for production, the distribution channels used for supplying the product, and the production labor
will all change when you increase production, so they will all be considered variable expenses.

4. One-time expenses
These are one-off, unexpected costs that your business might incur in any given year. Some examples of these costs include replacing
broken furniture or purchasing a laptop.

Since it is difficult to predict these expenses, there is no certain way to estimate for them. But it’s wise to set aside some cash for this
category to stay prepared.

5. Cash flow
This is the money that travels in and out of the business. You can get an idea of it from your previous financial records and use that
information to forecast your earnings for the year you’re budgeting for. You’ll want to pay attention not only to how much money is
coming in, but also when. If your business has a peak season and a dry season, knowing when your cash flow is highest will help you plan
when to make large purchases or investments.

6. Profit
The final budget component is profit, which is a number you arrive at by subtracting your estimated cost from revenue.
An increase in profit means your business is growing, which is a good sign. Once you have projected how much profit you
are likely to make in a year, you’ll be able to decide how much to invest in each functional area of your organization. For
example, will you use your profit to invest in advertising or marketing to drive more sales?
WHAT IS PERSONAL BUDGET?
A personal budget or home budget is a finance plan that allocates future
personal income towards expenses, savings and debt repayment. Past
spending and personal debt are considered when creating a personal budget.
There are several methods and tools available for creating, using and
adjusting a personal budget. For example, jobs are an income source, while
bills and rent payments are expenses.
TOOLS USED FOR CREATING PERSONAL
BUDGET
Not everyone relishes the idea of proactively managing money and maintaining a budget. However, creating a budget – and
sticking to it – are key first steps toward reaching financial goals large and small.

What's more, selecting the right budgeting tool can make or break your ability to follow a spending plan. "It's got to be a part
of your life if you want to achieve (your) goals," says Paul Miller, CPA and owner of New York City-based accounting firm Miller
& Company LLP.

From old-school methods to the latest apps, here are 10 simple and free budgeting tools to keep your spending on track:

-Pen and paper.

-Envelopes.
-Spreadsheets.
-Worksheets.
-Mint.
-SoFi Relay
-Good budget.
-Personal Capital.
-Albert.
-Banking Tools.
FOLLOWING A BUDGET
BUDGETARY CONTROL TECHNIQUES

Record small expenses for the best budget success.

The road to financial hell is paved with good intentions -- including budgets. It’s not enough to create a solid budget,
even if it’s completely accurate and takes into account all your financial goals. A budget is only as good as your ability
to stick to it, and misinterpreting part of it, not updating it regularly or not keeping track of it monthly can lead you
down the road to financial peril. Tracking small discretionary expenses is the best way to make sure your budget
accurately reflects your spending and stay on track with your financial goals.

Build A Good Budget Document

The first step to following a budget is to create an accurate budget document. Do this by using last year’s bank and
credit card statements, checkbook, taxes and other financial records to accurately estimate this year’s expenses.
List your expenses in two sections: fixed and variable. Fixed expenses don’t change, such as rent or a car payment.
Variable expenses like groceries change each month. After you put together your first budget draft, adjust your
variable expense estimates to meet your financial goals. Financial expert Dave Ramsey recommends that you
overbudget for groceries, because this is an area where many people err when setting out their budgets.

Record Savings As Expenses

Prevent yourself from spending excess cash you see building in your bank account by recording savings items as
expenses in your budget. For example, if you plan on saving for a home down payment by putting away ₹3000 per
month, add that as an expense item in your budget. When you see ₹36,000 extra cash in your bank account later
during the year, your budget will remind you that ₹35,000 of that is “untouchable” home down payment money.
Use Several Formulas
Don’t just total your expense categories. Average your monthly expenses and project your annual numbers using
different formulas. To see if you are meeting your monthly goals, create an “Average Monthly” column that divides
your total spending in each category by the number of months that have occurred. Multiply your “Average Monthly”
number by 12 in a “Projected Annual” column to see where you will be at the end of the year if you keep spending at
your current levels.

Record Small Expenses

You can’t follow a budget that doesn’t tell you the truth. If you spend $7 for lunch, record that in your budget. If
you go to the movies and spend $33, record that in your budget. These small discretionary purchases eat up
thousands of dollars of your annual income, and many people don’t realize why they can’t meet their budget goals.
The best way to follow a budget is to acknowledge all of your spending so you can see what’s really happening with
your money.

Enter Expenses Accurately

Be careful not to double-record expenses you pay with a credit card. If you put your $400 car payment on your
credit card, record it as an expense in the month it occurs. If you pay that $400 off your credit card later, don’t
record that payment, since you already recorded it in the month you were billed. This can be tricky if you carry a
balance from year to year and requires you to keep track of how much of your monthly credit card payments
during the year go to last year’s balance and how much goes to reduce this year’s purchases. Record monthly credit
card interest as an expense if you want to track your net worth, or leave it out it if you simply want to use your
budget to manage your monthly cash flow.
FAMILY OUTLINE
FAMILY NAME : GIDDE’S
NO. OF FAMILY MEMBERS : 5
NO. OF EARNING MEMBERA OF THE FAMILY : 1
NO. OF CHILDREN STUDYING : 3
NO. OF HELPING HAND AT HOME : 1 ( 1 half time )
NO. OF LAND LINE : 1
NO. OF MOBILE PHONE : 3
NO. OF VEHICLES : 2
HOUSE OWNED
DESIGNATION OF EARING MEMBER : REAL ESTATE AGENT
FOR THE MONTH OF JANUARY
CATEGORY MONTHLY EXPENCE

ACTUAL INCOME 57000

HOUSE MAINTAINANCE 4000
GROCERY 14000
FRUITS AND VEGETABLES 2500
MILK 1500
ELECTRICITY AND WATER 3000
CONVEYANCE 1000
EDUCATION AND COACHING 15000
AUTOMOBILES 3000

MEDICAL 4000
 CATEGORY MONTHLY EXPENCE
STATIONARY 400
ENTERTAINMENT 1000
CABLE , INTERNET CONNECTION 1150
HOME UTILITIES 700
LAUNDARY 500
TRAVELLING 1000
REPAIRS 500
MISCELLANEOUS 2000
DEBT INSTALLMENT 1000
GRAND TOTAL 55750
SAVINGS 750
 MONTHLY EXPENCE

HOUSE MAINTAINANCE GROCERY FRUITS AND VEGETABLES MILK ELECTRICITY AND WATER
CONVEYANCE EDUCATION AND COACHING AUTOMOBILES MEDICAL STATIONARY
ENTERTAINMENT CABLE , INTERNET CONNECTION HOME UTILITIES LAUNDARY TRAVELLING
REPAIRS MISCELLANEOUS DEBT INSTALLMENT SAVINGS
 MONTHLY EXPENCE
16000

14000

12000

10000

8000

6000

4000

2000

MONTHLY EXPENCE
MONTHLY EXPENCES

ACTUAL INCOME SAVINGS DEBT

Conclusion
A budget is a road map for your business. It helps you predict cash flow, identify functional areas that need improvement,
and run your operations smoothly. Successful businesses invest a lot of time and effort into creating realistic budgets,
because they’re an efficient way of tracking the extent to which the business has achieved its goals. Creating a budget can
get a bit overwhelming for new businesses as there are no previous figures to guide their budget estimates, but with some
estimates based on the performance of competitors and an understanding of the components of a budget, you can
complete your first budget and have a good road map for future budgets.
BIBLIOGRAPHY
- https://slideplayer.com/slide/12781632/
- https://en.wikipedia.org/wiki/Personal_budget
- https://en.wikipedia.org/wiki/Budget
- https://budgeting.thenest.com/ways-follow-budget-20924.html