Christin Maur October 16, 2020 Budget
However, even if a budget calculator reveals that you have surplus funds each month, you should not necessarily assume a loan or investment venture is right for you. For instance, if you are left with surplus money each month, but you do not have a savings, you might want to consider putting your money towards a savings rather than an investment. It is usually a good idea to put some money aside, just in case you suddenly need it. After all, you never know when a financial situation can take you by surprise.
Work out your total income for a set period of time, usually a week or month, and then subtract your expenditure for that time period. This helps you to work out if you have a shortfall or spare money and from there you can work out what action you need to take, whether it is to cut costs or to save more.
An online budget calculator is one such tool. These tools can help balance out your monthly household income and any savings you may have against various expenses - like regular bills, household expenses, automobile and health related costs, leisure and travel expenditures, and childcare related costs - to give you an idea of how much surplus money you are left with each month.
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.