Home Business & Management Financial Budget | Learn to Manage your Future Money

Financial Budget | Learn to Manage your Future Money

“Financial budget is simply to plan money for upcoming events.”

You can create categories such as home (including all applicable, leisure happy hour, debt and charity, vehicle, food)

Total the expenses and then calculate your net income. The goal is for

Income > expenses and as you become more proficient to grow the spread.

In this we are going thorough this topics:

  1. Budget definition and example
  2. Financial planning process
  3. Budget worksheet
  4. Write down all categories
  5. Conclusion
  6. FAQs

1) Budget definition and example

Budget definition and example

Measuring financial budget planning for any event is called a financial budget. A budget is a tool to analyze your upcoming event up and downs in your life which is predefined and which considers financial crises. Different types of budgets are there:

  • Cash budget,
  • Production budgets,
  • Sales budget,
  • Master budgets Etc.

On our past estimate or our previous data we decide our upcoming budgets Once a budget is created, a firm monitors it for one complete year.

For example, if you buy a raw material cement 1000 kg, but in previous data, only 900 kg of cement is used for production. Due to your workers being well trained and skilled, the company purchased a new cement mixer which avoids waste of cement. Here is the benefit we showed in the budget management that 100 kg saved last year.

Hence we understand from the above that budget is expected and can be traced. Budget management includes all the parameters whether it is managing labors or the introduction of new budgets. There are several analyses that can be done when managing the budget. This is the variance keep in mind during analyses some of them are:

  • Sales variances
  • Labor variances
  • Material variances
  • Overhead variances

2) Financial planning process

Mortagage

You should start with a piece of paper. I like to write on paper, there are different apps in the market you can use them also but I personally write on paper so take whatever you want.

All budgets start with you and your house.

Now write your all giving money

Third, you need to Budget the essentials. Essentials that meet the requirements of everyday life.

Financial budget

These include the following in this order:

  • Groceries or Food (NOT eating out)
  • Rent payment
  • Utilities- Electricity, Gas, heating and power and phone and internet
  • Your daily fuel and car maintenance.
  • Avoid Lifestyle designer dresses
  • Insurance: homeowners, car and medical insurance
  • Debt service: minimum payments in all debt obligations. These include
  • credit cards, student loans, personal loans, medical debts, etc…
  • Items here include the following:
  • Prescriptions
  • Subscription
  • Cable or satellite TV
  • Netflix or streaming options, Hulu, Pandora, Apple TV, Apple iTunes (you get the picture)
  • Eating out
  • Designer clothes
  • Vacation
  • Gifts
  • Entertainment

Other items, this list can be long; it depends on your lifestyle.

You have to count each rupee of your budget. The best thing is that if you are single then you do it alone and if you are with your wife then it is going to be easier for you to just count every budget each spending money.

This is a very easiest way to live debt-free whether you are college going student or you are Financial Planning to buy a home or your children are going to university

It takes lots of control over yourself and the discipline of a month to practice it.

The concept of budgeting is to live a debt-free life and achieve success in your event. The best part is due to budgeting you save the wastage money.

 This means you spend less money then you earn. Most Indians are doing show off and due to this show off they waste lots of money.

so my advice to you forgot to rest , focus on yourself and your family needs and wants and fulfill them.

3) Make your Own Budget worksheet

Make your Own Budget worksheet

To build a budget worksheet you need to decide your all category of budgeting here I give you some ideas: 

  • 1) Non-Savings Categories
  1. Mortgage
  2. Homeowner’s Association Dues
  3. Utilities
  4. Cable
  5. Phone
  6. Gym
  7. Spotify
  8. Food (Groceries)
  9. Eating Out (Restaurants)
  10. Shopping
  11. Gas
  12. Dry Cleaning
  13. Miscellaneous
  • Now here are some carryover list
  1. Insurance
  2. Gifts
  3. Car + House
  4. Entertainment
  5. Beauty
  6. Dues and Subscriptions
  • 2) Savings Categories
  • Deep Savings
  • Pay House Down
  • Other Investments
  • Travel

4) Write down all categories of financial budget:

Write down all categories:

Now here is a game that you have to play at the end of every month you should have to create a list of your entire debit card and other expenses properly into categories.  Or you can use the above categories to simplify your list.

For example, if you are putting a Mortgage category the amount of money will be the same for every month you should now the proper amount for proper budgeting.

1. Homeowner association:

Due also not be changed every month you should have a track of your monthly expenses.

2. Phone

Keep tracking your home phone landline bill generally now a day’s phone is replaced with a mobile phone but if you have then kept the billing constant every month.

3. Gym

So, If you are going to work out for a gym the no of membership is the same for every month.

4. Spotify

This number is the same every month, we have to break it out into its own category.

5. Food/Groceries

If you are buying groceries from offline stores or online stores, go there.  We also buy our toiletries, cleaning supplies, this we can include in the same category.

6. Restaurants

we are going out for dinner So, in this category how many times you get outcomes under consideration.

7. Shopping

Clothing items are usually considered in the shopping category, but not only that the housing items are also considered into the shopping category. This category does not consider repairing this category is only for buying new things like furniture, decoration, storage, kitchenware, and other household things.

8. Gas

This is a separate category because gas used something’s 1 cylinder in a month and sometimes 2 cylinders in month

9. Dry Cleaning

Your dry cleaning bills go here.

10. Miscellaneous budgets

Miscellaneous activities like shipping charge of any product or you have to post any letter. The cost bearing is considered under this category due to this happening in a year.

11. Cable:

Let us our Bill of cable is remaining the same and under budget every month but it is not possible because the rate of cable is increasing day by day so predict it forecast according to the previous data the rate of increment then take the average rate of increment for proper tacking. Generally in this category, we consider only the internet and a T.V. cable bill. Today’s T.V. recharge bills are online so we can’t negotiate for that if possible then negotiate.

12. Utilities

In a category of utility bills, the following thing is considered water, sewer, gas, electric. So if you are confused about the variation of this then you have to look at your past yearly expenses and consider the higher one. You have to aim for an under budget every month that’s why we take a higher one. Now see another category.

Now some of Carryover let us understand what are they:

insurance

1. Insurance:

Firstly, insurance policies are coming under the insurance category. In this, you put your personal insurance, car insurance, home insurance, anything all the insurance policies are considered into this category.

2. Gifts

A gift means they are for our loved ones. Therefore, we buy a gift for our father, mother, wife, sister, children, and our loved ones.  The occasion is anything like wedding presents, birthdays, baby showers, holidays or it’s just a normal day gift.

3. Car + House

Yes this can be a new category for us and one time we have to pay for it when we purchase but this is a liability we have to do maintenance after an interval of time.  We had the car category we can put here a registration fee and used this for repairs, new tires, etc. 

4. Property

if you will buy a home for a few years (it will new when we will buy it), we realize we will also need a budget for repairs, carpet cleaning, and things like that.  This category is only for repairing 

5. Entertainment

This category for fun and entertainment in this category many more things we can consider but we have to figure out each and everything. We have to take care of our fun and entertainment.

6. Beauty

In this category, we can put your hair cut shaving if you are a girl then your eyebrows and other stuff you have to put your things in this category.

7. Dues and Subscriptions

This is a newly originate category for us meanwhile, we use nowadays a subscription-based thing. The Netflix subscription or any other subscriptions are considered into this category So, to make it easy to remember which subscription we should have to pay monthly. In this, you have to put your newspaper bills to an Amazon subscription yearly

5) Conclusion

To monitor and provide control over your money is a very important thing in your life to run your life smoothly. you have to manage all the financial aspects like small things which are I told you in this blog due to this you can get massive success. and you can live freely. if you are doing financial budget management for any business it is the same applies to the business just you have to understand the basic knowledge of budget. so just go and plan your next event smartly and tell me in a comment if you have any confusion.

6) FAQs:

Ques: Does Financial and Business budget management is same?

Ans: Financial budget management depends on your mindset and skillset if you are doing for personal or for business it’s up to you in this blog you just understand the basic parameters which you have to keep in mind while doing budgeting.

Ques: What is budget simple words?

Ans: to plan our money and identify how much money will be required to live a great life. or to plan money for any upcoming events functions etc.

Ques: Does saving money and financial management is same?

Ans: NO. they are different but saving and investing money is a part of financial management.

Ques: Main types of financial Budget?

Ans: There are three main types:
A balanced budget,
surplus budget.
and a deficit budget.

Ques: What is master budget?

Ans: the master budget i overall budget which includes sub budgets in it.

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