Personal Budget .

December 26, 2020 By Swapnil Suryawanshi

personal budget or home budget is a finance plan that allocates future personal income towards expenses, savings and debt repayment. Past spending and personal debt are considered when creating a personal budget. There are several methods and tools available for creating, using and adjusting a personal budget. For example, jobs are an income source, while bills and rent payments are expenses.

Category2012%2013%2014%Change in Spending, 2012–13Change in Spending, 2013–14Change as Percent of Budget, 2012–13Change as Percent of Budget, 2013–14
Food at home3,9217.63,9777.83,9717.4+1.5%−0.2%+0.2−0.4
Food away from home2,6785.22,6255.22,7875.2−2.0%+6.2%00
Apparel and services1,7363.41,6043.11,7863.3−7.6%+11.3%−0.3+0.2
Health Care3,5566.93,6317.14,2908+2.1%+18.2%+0.2+0.9
Cash Contributions1,9133.71,8343.71,7883.3−4.1%−2.5%0−0.4
Personal Insurance and pensions5,59110.95,52810.85,72610.7−1.1%+3.6%−0.1−0.1
Other Expenditures3,5573.73,2676.43,5486.6−8.2%+8.6%+2.7+0.2

Pencil and paper :

A personal/home budget can be written on a piece of a paper with a pencil and, optionally, a calculator. Such budgets can be organized in ring binders or a file cabinet. Simpler still are pre-formatted budgeting books or bookkeeping forms in which a budget can be created by filling in the blanks.

Spreadsheet software :

Spreadsheet software allows budgeting by performing calculations using formulas, for example in keeping track of income and expenditure. A drawback of budget spreadsheets is that some do not offer date-shifting, so information has to be re-entered or moved at the end of each month.

Money-management software :

Some software is written specifically for money management. Products are designed to keep track of individual account information, such as checking, savings or money-market accounts. These programs can categorize past expenses and display monthly reports that are useful for budgeting future months.

What is a good personal budget :

Try a simple budgeting plan

We recommend the popular 50/30/20 budget. In it, you spend roughly 50% of your after-tax dollars on necessities, no more than 30% on wants, and at least 20% on savings and debt repayment.

Personal Budgeting and Tips for Tracking Your Expenses

What is a personal budget used for :

personal budget gives you flexibility, choice and control over how you pay for your care and support needs. A personal budget is an agreed amount of money that is allocated to you by your local council (and through other funding streams).

What is a personal or household budget :

personal or household budget is an itemized list of expected income and expenses that helps you to plan for how your money will be spent or saved, as well as track your actual spending habits.