How to Set a Budget : Personal Finance Tips

Uploaded by expertvillage on 21.01.2008

I'm going to talk about preparing a simple family budget. Here we have the budget and
the date. This is for the month January 2008. In this column we list the item and you can
see the various items listed here down to a total for total monthly bills. The next
column is the status of the bill. I like this because it just let's you track if the bill
has been paid, whether you have received the bill but not yet paid it. Whether you are
waiting for the bill to come in. The pay type maybe online, it may be a bank draft where
they just draft the amount from your account or you may mail it in. So I have these noted
here on this column D. Amount paid this is what we paid during the month, budget amount
this is what we expect to pay each month. Budget minus paid this is the difference between
the budget amount and the amount paid. So it tells how close we are to our budget. I
added this column amount owed so we can keep track of our total amount that is owed on
our house, our cars, credit cars that type of stuff so we know how this is increasing
or decreasing over time. Date paid this is just sorted so that we know when we are paying
our bills, what day of the month we are paying them on. Due date is when these bills are
due. I have added a column for interest so I know what I owe on credit cards and certain
loans we can track how much the interest is. In the available credit this is on credit
cards just so we know how much is available based on the credit limit and the amount that
we owe. Down on this section we have other expenses including food, house hold, clothing,
entertainment, vacation and savings. Down here you have the monthly pay for John and
Mary that we are tracking. Down here over and under is the difference between the total
pay and the total amount we spend each month.