Personal Financial Budget Analysis

People are not being able to save because they are putting their wants in place of their needs. Saving money is one of the hardest things to do. First they need to develop a budget to be in control of where their money is going. One should record their monthly expenses, and any money saved for the month put away for emergencies. Today, people are making more money than ever before and still living paycheck to paycheck. Developing a budget will get one accustomed to living within their means and will open up more money for saving.

My personal finances are solid and on track with my attitudes towards money and savings. This budget exercise is common practice for me as I keep track of every dollar I spend. I am a saver and I keep track of my savings using a spreadsheet and updating my information almost every day. Budgeting is a necessary step in order to figure out where exactly money is going and how much of it is being allocated to different items.

“Keep a record of your expenditures. Record and review monthly income and expenses. Determine how to reduce what you spend for nonessentials….discipline yourself to live within your budget plan.”

A budget is how you avoid going overboard or lose track of your spending. No one wants 5-figures of consumer debt do they? Rule 1 is always budget with your NET income, which is your income after taxes.

Would analyzing my dollar diet closely, I spent $541.96 additional this month than I would not on a regular basis due to that I needed new tires for my car. Although at the beginning of this month I did put it in my budget because I was aware of this expense. When analyzing the actual from the budget the most I was off on recreation of 179.64 this was due to my dad's birthday. we all went to the casino in Lincoln City had dinner for his birthday. this was not in my budget, when writing it I totally forgot to add this in. Next time when I'm writing a monthly budget I will look at my calendar and see if there's any significant events that I will be attending this will help me have a better monthly budget. When you look at the actual compared to the budget the total amount that I was under for my budget to actual was $550.30. Another expense that I was not expecting with my electric bill was severely higher this month than it usually is which caused me to under budget living expenses of $109.63. Although the budget compared to actual was approximately off by 9.3%. majority of this was due to the birthday and higher utilities bills than expected. I believe next month I will have a higher savings rate due to that I will not obtain any new tires or car

In orders to maintain a good financial budget setting some goals and reviewing them often will help a lot not to get sidetracked. Also having goals is necessary to any successful plan. Three short term goals for me fix my phone, buy a class ring, and get some new books like $300 worth this year. As for three intermediate financial goals would be buying a car, paying for college, and saving for a vacation($5,000). Some three long term financial goals of mine would be buying a house, saving for an emergency($25,000), and paying for car insurance.

A spending plan needs to also include a category for saving money and using any additional money to reduce the existing debt. It may be sensible to put away any credit cards or checkbooks if you are prone to impulse shopping. Using a thorough list and waiting for particular sales are good tools to stick to a budget.

A budget can be thought of as a map towards a goal, such as retirement or saving for a particular items such as a house or a car. Subsequently, making a budget gives us a tool to complete this goal and keep us on track towards the end. Just as the financial planning process involves creating goals, budgets are a means to make the goals a reality and not just a dream. (Siegel & Yacht, 2009) One tool we learned about of course is being conservative, others include the cash budget when our income is less predictable, or a comprehensive budget which should include an operating budget and a capital budget. Moreover, there are times a specialized budget might need to be created for a specific goal such as a dream vacation or a tax

Budget is the major financial and economic statement. The role of the budget is to keep track of the money coming in and the money going out. It is essential part of running any business effectively. It can help make a short and long term projections about financial situation, avert a financial crisis and plan for major financial changes.

Establish your budget. Are you looking for an easy way to begin? On the first day of a new month, get a receipt for everything you purchase. Stack the receipts into categories like restaurants, groceries, and personal care. At the end of the month you will be able to clearly see where your money is going.

A budget refers to a financial plan that represents the allocation of the income to various expenditure channels such as expenses, savings, and debt repayment. A personal budget is important because avoiding financial surprises and keeping financial stress down helps avoid a crisis and allows you to focus on your overall goals. You cannot avoid all risks in life but if you plan your finances to live within your means, you can avoid being kicked out of your home, losing your car and other terrible things that a solid budget would help you avoid. Knowing what you can afford is a central life skill. Unfortunately, many do not budget even though they know they should (Wagoner, 2012).

Personal budgeting is an important factor in regards to successful long term financial stability. Budgeting has many great aspects as well as showing areas of weakness. It can show the truth about your personal financial spending habits, areas that are not looked at enough, and if there are needs for a larger emergency fund. The reality of personal budgeting is that many people potentially do not keep a personal budget for one reason or another. People also don’t consider the negative effect that it could have on one personally and or how it effects the economy.

The budget is quite important, as the details of how and when the money will be spent need to be understood so that the reader can know where the money is going. A suggestion is to develop a spreadsheet by month by medium and time (month, week, quarter) that will allow for dollar placement in each specific cell to make it easy for the reader to understand the complete picture.

With a personal finance software, you can now have a complete analysis of your finances. However, this graphs and reports can be a lot easier if you have some accounting background. It also lets you create a budget that you can stick in. These software create a realistic budget for you. Enter your basic

In order to make a personal budget you have to figure out what your income is for a