14-06-2017, 08:54 AM
Maths project on planning a home budget i want this project and other maths projects also plz solve this project for me
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icse maths project on planning a home budget
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Maths project on planning a home budget i want this project and other maths projects also plz solve this project for me
14-06-2017, 02:18 PM
A personal budget or a budget for the home is a financial plan that allocates future personal income to expenses, savings and debt repayment. Past spending and personal debt are considered when creating a personal budget. There are several methods and tools available to create, use and adjust a personal budget. For example, jobs are a source of income, while bills and rent payments are expenses.
Personal budgeting, while not particularly difficult, tends to have a negative connotation among many consumers. Sticking to some basics helps to avoid several common dangers of budgeting.
Purpose
A budget must have a defined purpose or goal that is achieved within a certain period of time. Knowing the source and amount of income and the amounts allocated to spending events are as important as when these cash flow events occur.
Simplicity
The more complicated the budgeting process, the less likely it is for a person to stay current. The purpose of a personal budget is to identify where income and expenses are present in the common household; It is not to identify each individual purchase ahead of time. How to define simplicity regarding the use of budget categories varies from family to family, but many small purchases can usually be grouped into one category (car, household items, etc.).
Flexibility
The budgeting process is designed to be flexible; The consumer should have the expectation that a budget will change from month to month, and will require monthly review. Excess costs in a budget category should be counted or prevented in the next month. For example, if a family spends $ 40 more than they thought on food despite their best efforts, next month's budget should reflect an increase of about $ 40 and a corresponding decrease in other parts of the budget.
"Breaking the budget" is a common trap in the personal budget; Frequently breaking the budget can allow consumers to fall into pre-budget spending habits. Anticipating budget reduction events (and underweight in other categories), and changing the budget accordingly, allows consumers a level of flexibility with their income and expenses.
Irregular Income Budget
Special precautions should be taken for families operating on unearned income. Irregular-income households must take into account two common pitfalls when planning their finances: spending more than their average income and running out of money even when income is average.
Clearly, the need for a household to estimate its average (annual) income is paramount; The expenditure, which will be relatively constant, must be kept below that amount. A budget that is a rough estimate, space for error should always be allowed so keeping expenses 5% or 10% below estimated income is a prudent approach. When done correctly, households must end any given year with about 5% of their remaining income. Of course, the better the estimates, the better the results.
To avoid running out of money because expenses occur before the money arrives (known as a cash flow problem in business jargon) a "cash cushion" of excess cash must be established (to cover those months when Real income is below estimates). There is no easy way to develop a safety cushion, so families often have to spend less than they earn until they have built up a cushion. This can be a difficult task, especially when you start during a low in the profit cycle, although this is what most budgets start. In general, households that start with expenses that are 5% or 10% below their average income should slowly develop a savings buffer that can be accessed when earnings are below average. Whether this rate of building a cushion is fast enough for a given financial situation depends on how the variable income is and whether the budgeting process begins at a high or low point during profit cycles.
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