A monthly budget plan is the overview of what funds come into your account and then what funds exit the account. Balancing your budget helps to lower and eliminate debt.
Budgets help people track and manage their money by showing outflow and inflow. Budgets can show where you are spending too much money and areas where you can make cutbacks.
A budget can be as simple as writing all expenses and income on a sheet of paper or as complicated as a spreadsheet with charts and graphs. The complexity is not important, as long as the budget serves your particular needs.
A budget can go as far as a year in advance in an attempt to plan for future expenses, reduce debt or control expenses. Most budgets, however, are created on a month-to-month basis to help people manage outflow and inflow.
Break down each expense into categories, such as dining, entertainment, clothing, groceries, insurance and auto expenses. Categorize each form of income as well.
A monthly budget should be analyzed and areas of reduction should be considered in an effort to pay down additional debt or increase savings. Additionally, note any significant changes from month to month to see if there are any new areas of spending.
- Photo Credit Image by Flickr.com, courtesy of Balazs Gal
Budget Planning Definition
Budget planning is the process by which a company or individuals evaluate their earnings and expenses and project their monetary intakes and...
How to Plan an Adult's Birthday on a Budget
Having an adult's birthday party is a great way to celebrate being another year older and hopefully wiser. Adult birthday parties are...
How to Start a Home Budget Plan
A home budget plan is a guideline that you and your family use to manage your money on an ongoing basis. A...
What Is 10-10-80 Budget?
The 10-10-80 budget is a simple, practical financial planning tool that can help individuals as well as families. The budget seeks to...
What Is a Cost Budget?
A cost budget is a financial plan that addresses each major expense category, including financing and administrative costs. Cost budgets can be...
What Is Budget & Budgetary Control?
A budget refers to a written document detailing the ways an organization will allot its money. As the head of the business,...
What Is a Program Budget?
Perhaps your organization wishes to develop a team building program or an annual charity program. Whatever the event, such activities cost money....