AxTenk Blog

Preparing and maintain your Personal Budget  using the following guides:

STEP 1 – Estimate the family’s annual income. Identify fixed amounts of income expected from the following:
a.    salary
b.    bonus
c.    self-employment (business)
d.    real estate
e.    dividends – close corporations
f.    dividends – publicly traded corporations
g.    interest – savings accounts
h.    interest – taxable bonds
i.    interest – tax free bonds
j.    trust income
k.    other fixed payment income
l.    variable sources of income

STEP 2 – Develop expenditure estimates broken down between fixed and discretionary expenses. Canceled checks and charge account receipts serve as a good basis for developing the following expenditure estimates:

FIXED
a.    housing (mortgage or rental payments)
b.    utilities
c.    food, groceries, etc.
d.    clothing and cleaning
e.    income taxes
f.    social security
g.    property taxes
h.    transportation
i.    medical and dental
j.    debt repayment
k.    household supplies and maintenance
l.    life and disability insurance
m.    property and liability insurance,
n.    current school expenses

DISCRETIONARY
a.    vacations, travel, etc.
b.    recreation and entertainment
c.    gifts and contributions
d.    household furnishings
e.    education fund
f.    savings
g.    investments
h.    other

STEP 3 – Determine the excess or shortfall of income within the budget period.
STEP 4 – Consider available methods of increasing income or decreasing expenses.
STEP 5 – Calculate both income and expenses as a percentage of the total and determine if there is a better or preferable allocation of resources.

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