12 Personal Budget Preparation
In this blog, I will show you how
to create a personal budget plan. Before
working on the plan, you have to identify all the income that you will be
getting in the next few months and the expenses that you foresee during these
months. Don’t worry; there will also be
a buffer row where you can keep funds for emergency or other unforeseen
expenses.
Start with a 1 year budget and
over a period of time, increase it to other years. When you are planning for a multiple-year
budget, increase your expenses by 10%, each year.
This is done so that in case it doesn’t rise by 10%, the balance amount
becomes your buffer.
I have attached below a sample
income and expenditure sheet that is done for a year. Similar one can be created for multiple years
too. Over a period of time, you will be
able to fine-tune it to give you a comfortable idea of what money is left with
you!!
Income Sheet
The Excess Row is the excess that
you are left with, after deducting all the expenses from the next sheet in that
month. Running excess is arrived by
adding the excess of previous months’ to this month’s excess. You can add more rows to this sheet based on
the income that you are generating.
Expenditure Sheet
The Miscellaneous Row is your
buffer row. As per your expenditure in a
month, you can add more rows to the sheet.
The household expenses will cover all your groceries, payment to maid, medicines,
doctor fees, house rent etc. Or you can also
have a separate row for these expenses.
Once you are able to monitor and
follow this sheet, over a period of time, you can extrapolate it to cater for
future years too.
Do let me know in case you are
not able to understand something above.
Happy Budgeting!! Cheers!!
Today’s daffy definition
Advice – A piece of wisdom from a
person who probably rejected it a long time before you were born!!
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