Stephanie Geddes October 11, 2020 Budget
The next step in the budgeting process is to ascertain what you spend on everyday items such as food and petrol. When budgeting, it is important to include all expenditure to do not forget to include even the smallest of details. If you grab a morning latte before each work each day then this should be accounted for within your budget. Last but not least, a comprehensive budget will also take into account estimated amounts for occasional costs such as birthdays, Christmas presents, holidays or dentist and optician bills. You may not have an exact figure but an estimate works just fine to give you an idea of how much this adds up to every month.
Some budget calculators will also break down monthly expenditures to reflect a percentage, enabling you to see what proportion of your income goes towards each expense. Simply put, they offer a quick and simple way for you to get a preliminary idea of whether you should apply for a loan or invest your money.
These days we all have to keep a tight rein on our household expenses. One of the best ways to keep control of your finances is to use a budget calculator. This will help you see where your money is going and where you may be able to make savings.
Which Budget Calculator? When you have got your paperwork to hand it is time to find a budget calculator. There are loads of budget calculators on the internet - have a look at a few and see if there is one suitable for your needs. If you ca not find one that looks right for you, you could set up a personalised one on a spreadsheet. Go through your bank statements and make a list of all your monthly, quarterly and annual bills. Then add one third of the quarterly and one twelfth of the annual bills to your monthly column. Next list all your monthly income in the same way. Transfer the information to your chosen budget calculator and see where your money is going.
Determining your financial health can be quite difficult if you have no idea how much money you make or how much money you spend on a monthly basis. In fact many people have no idea what their current financial status is because they live pay check to pay check. This is where the budget calculator can be a great help, simply because it allows you to take back control of your finances by actually seeing how your money flows.
First of all, at the top of the list is your income which can be divided into 2 categories: paycheck and other after-tax income. These are the only categories in the income part of the calculator. The rest is occupied by various categories of expenses. The first category of expenses is housing expenses which include the following subcategories: Property (mortgage/rent/property tax), Utilities (Gas, Water, Electricity), Phone, TV and Internet.