How to make a budget familiar

3 February 2009 - 18:13

A familiar budget is a document where we projected futures monetary income (for example, income that we will obtain through our use or businesses), and futures monetary debits (for example, the expenses implied in covering familiar needs or the payment of contracted debts).

The main objective to elaborate a familiar budget, is to have a greater control of our debits, being tried whenever the difference between the income and debits, is the possible major.

We see next which are the objectives or reasons of elaborating a familiar budget:

• to know our level saving (income less debits) and, that way, to know if we are obtaining a level of suitable saving, or is necessary to reduce some expenses, or to look for new sources of income (for example, new businesses or investments).
• to identify the games where the greater percentage of debits is concentrated and, that way, to analyze if it is possible to reduce the expenses in this game.
• to know our level indebtedness (debits as a result of the payment of debts) and, that way, to know if we must limit the use of debts or, in any case, if it is possible to acquire new.

We now see a model of the basic structure of a familiar budget:

	January	February	March…
INCOME
Pay
Businesses
Investments
Pensions
TOTAL INCOME
DEBITS
Quota or renting
Foods
Water
Light
Gas
Telephone
Cable
Internet
School/university
Transport
Clothes
Taken care of personal
Recreation
Quota automobile
Combustible automobile
Maintenance automobile
Credit cards
Loans/credits
Expenses several
TOTAL DEBITS
BALANCE (Income - Debits)

Conclusions

• to this basic budget we will add or clear some games according to other income or debits to him that we have.
• the difference between the income and debits of every month (balance), would come to be the saving that we have obtained in the month.
• this balance or monthly saving, we must try that always he is positive (that the income are always majors that the debits), and must try whenever it is the possible major, the recommendable thing is that it represents a minimum of 10% of the total of the income.
• this balance or saving will serve monthly to be constructing us our total savings, which we will use for any emergencia or eventuality, to invest in new businesses or investments, or to be pleasant some to us that improves our quality of life.
• in order to obtain the greater balance or possible monthly saving, we must identify the games that majors expenses represent and to try to reduce the expenses in her or, of being possible, to remove them from our budget.
• another form to obtain the greater balance or possible monthly saving, is looking for new sources of income, for example, new businesses or new investments.
• to our balance or monthly saving, we can add the balance to him that we had accumulated for, that way, to know which is the total saving that we have.
• once known our savings total we will analyze, and see it the possibility of creating new businesses, of acquiring new investments, or of giving some us deserved luxuries that improve our quality of life.

Labels: Personal concepts, Finances, Finances

Compártelo

Related contents:

1. How to save
2. The cash budget
3. How to handle the personal finances in the days of crisis
4. How to make a Flow of Box
5. How to make a Earnings statement