Makayla Maudsley October 4, 2020 Budget
Even with slider and input field view options, a series of numbers can be difficult to make sense of. Look for a budget calculator that gives a pie chart for annual expenses in order to understand where your money is going. A graphical image can give users a good sense of how to construct a monthly or annual budget. Consider finding financial planning software that includes a calculator for your budget in order to make the most of your hard earned cash.
Food expenses should average about $150 monthly per person. This is the total amount including grabbing a bite to eat at the local restaurant. Look for sales at the supermarket and cook at home more often. Frozen and gourmet prepared foods are more expensive than home cooking. Break out the recipe book; your family may just thank you for it.
To make this exercise easier, ask for receipts for each purchase you make. In the interim, we should keep our receipts in envelopes labeled for each budget category. Then, take time at least once each week to review those receipts and tabulate the totals for each category. After two or three months, you have much more information to work with and are better able to find trends in your spending habits. Then, it will be easier to make the necessary adjustments so that your budget accurately reflects your spending lifestyle.
If you are in financial difficulty, then debt consolidation by refinancing your home can be a good idea. But beware of refinancing your home to 100% of its equity. If you do this to the full extent of your home equity, then it will be quite some time before you are able to raise future funds against your property, if they are needed. This will leave you with no emergency financial cushion. And it will take a few years for your finances to stabilize once more. Find out what the law is where you live. Some states will not allow you to borrow more than 80% of the value of your home.
Budget Calculator - Getting Started: It is probably a good idea to collect your last twelve months bank statements to make sure you do not forget to include all your quarterly and annual bills. Collect the records of all your income, including investment income and interest on savings. Your expenses fall into several categories - some are unavoidable, some are discretionary and some are unexpected. Your unavoidable expenses include things like mortgage or rent, electric and gas and of course food. Discretionary expenses are things like eating out or a day at the spa. Unexpected expenses include things such as repair of an essential household appliance or a new boiler.
If you want to work out your own personal budget you can do so in many ways. If you prefer the traditional paper and pen method that is fine as it works just as effectively as using a computer. If you are more akin to personal computers or laptops then you could use a spreadsheet to note down your budget. You can also buy computer programs designed specifically to help with personal finance planning.