Monthly Expenses |
Image source:https://bookkeepers.com/how-to-stick-to-budget/
This is the formula:
A) Determine your total cash at the beginning of the month:
Cash
Savings accounts (for making payments and receiving deposits)
Current accounts (for making payments and receiving deposits)
Add
B) Cash income for the month:
Salary
Dividends and Interest receipts
Other income (e.g. earnings from AdSense)
Less
C) Fund at the end of the month:
Cash in hand
Savings accounts (for making payments and receiving deposits)
Current accounts (for making payments and receiving deposits)
Equal
D) Your expenses for the month
In short: A+B-C=D
This method is only good when you actually pay in full the expenses that you have incurred for the month. Bear in mind also that the outflow of cash includes your payment made towards credit cards and other non-expense items such as savings and investment. It does not include charges for the month made on credit cards which you have not yet settled and any other outstanding bills. There is a difference between expenses incurred for the month and actual cash outflow for the month
I would suggest you do a detailed record of your expenses for a few months so that you know the pattern of your monthly spending in the following areas: Grocery items
Utility bills
Children's education
Petrol and traveling
Housing loan
Insurance premiums
Car loan
Entertainment
Clothing
Medical expenses
When you have done that you can review and do a cutback on unnecessary expenses in this trying time.
Happy budgeting and prudent spending!
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