How To Manage your budget?

 

 Meaning of budget:

"Manage your yearly/monthly income with all Calculate expenses." save money for your Happy Future.

From big country to small business, everyone has a budget, and every budget divided in different categories according to Different expenses. Example: country budget is divided into subcategories like Defiance, education, agriculture, industries, roads and infrastructure development etc...

NOTE: Consider income in dollar. Please adjust according to your country currency.

Today Budget Broke in Few Stap's

Stap 1: How much money do you have on your hand after paying taxes, this includes all your side incomes

Example: If you are United State person and your yearly around $77,000. According to USA Govt income tax department, you have to pay 22% of Income tax from your Salary.

$77,000-$16,914 = $60,060

After Year You Have Only $60,060 In Your Hend

Stap 2: Separate for your multiple insurance, like health insurance, car insurance, 3rd party insurance, house insurance etc...

Example: From remaining amount, you have different insurance total Amount round $2160 per year and home rent around $14,400 per year which is around $16,516 per year.

Remaining amount $60,060 

                             -  $16,516

The meaning total amount is $56,500

Now this money is actually considered as in your hand because above expenses are fixed Expenses which you do not avoid.

Stap 3: We Are suggesting Minimum 10% of your salary have to "save for yourself, only for yourself". Note save for your family, parents, or children. save only for yourself.

Example: $56,500-$5650 = $50,850

Stap 4: Calculate your all groceries bill, electricity bill, education fees, phone bills, car maintenance, home maintenance and all kinds of maintenance Also Add subscription which you will pay month by month

Example: My entire grocery bills nearly $10,000

                Electricity bill around $1500

                Home maintenance around $2000

                Education fee nearly $18,000

                Another maintenance and subscription cost nearly $5000

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Total cost of all maintenance and subscription are nearly $37,400 

$50,850-$37,400=$13,450

Now you have around $13,450 on Your Hand

Stap 5: 20% save in your bank account, 20% invest in Gold or Selver, 30% For Traveling, 30% Cas for Any emergency situation

(Total 40% for bank and Gold or Selver = $5380)

(Total 60% for Traveling and Emergency situation = $8070)

this is some stapes which helps in Planning and calculate your yearly or monthly budget in easy and best possible way.

I hope this calculation and steps are help you a lot, thank you for reading. "Have a great day"

This Information is for Education purpose for better investment option and better budget planning. Please contact your local finance expert or Charter Accountant (CA)