Budget

Budget a financial plan that sets out expected income & expenditure.

REASONS TO MAKE A BUDGET

• to live within your means
• to make your thinks about spending
• to plan for larger items
• to identify months where there are large expenses

ANALYSING BUDGETS

• Balanced Budget: Income = Expenditure
• Budget Surplus: Income > Expenditure
• Budget Deficit: Income < Expenditure

DEALING WITH A BUDGET SURPLUS

• Suggest investing or saving money

DEALING WITH A BUDGET DEFICIT

• Increase income → ask for raise / promotion → get a new job
• Decrease expenditure → light + heat
• Avail of credit → take out a short-term loans

WHEN GRAPHING A BUDGET

• Consider which graph is appropriate → most likely a pie chart
• Remember ALT: axis , label, title

SAMPLE BUDGET (HOW -TO)

	INCOME	Jan	Feb	Mar	Apr	Total
	Salary	2800	2800	2800	2800	11200
	Child Benefit	100	100	100	100	400
Add income in each month	Total Income	2900	2900	2900	2900	11600
	EXPENDITURE

---

Budget

		Fixed Expenditure
Expenses that don't Charge	Mortgage	1100	1100	1100	1100	4400
	Insurance	60	60	60	60	240
	SUBTOTAL	1160	1160	1160	1160	4460
Expenditure that varies the expense	Irregular Expenditure
	Light + Heat	200	400	310	250	1100
	Phone Bill	50	56	60	70	236
	SUBTOTAL	250	456	370	320	1336
From spending	Discretionary Expenditure
	Entertainment	50	60	50	210	50
	Holiday	0	0	250	250	0
	Subtotal	50	60	50	300	400
Add all subtotals	Total Exp,	1460	1676	1780	6256	1580
A-B	Net Cash	1440	1224	1120	5344	1320
	Opening Cash	350	1770	4334	350	3014
		1790	3014	4334	5454	5454