How to Set a Budget : Personal Finance Tips

Transcript

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