[E] Mr PersonalBudget
At last~ Win and I managed to record our daily expenses in November and finally ‘learned’ exactly how we spent our hard earned money on things, from the very important to the smallest tiny-winy-not-so-important stuff. I have tried to do this ‘Expenses Recording’ thing for quite some times.. but failed. haih~
When I did a cross check between the real expenses with the budgeted expenses that we plan in our Personal Budget (which we have already start practicing this since last year) … phew~! The real expenses are still under budget ^__^.
The Personal Budget is very helpful in managing our money. You have never heard of it? Ok, here are some basic things I know about Mr PersonalBudget. Basically, there are 3 main parts – Income, Fixed Expenses and Variable Expenses.
Income is the part where we declare the total income. How much money we earn in a month?
Fixed Expenses is the expenses that we have to pay monthly such as rent, car loan, and the bills.
Variable Expenses is the expenses that may be varied such as food, clothing and vacation.
Then, calculate this.
Income – (Fixed Expenses + Variable Expenses) = Difference between Income and Expenses
If the difference is negative, we are in trouble. Obviously, we spend more than how much we earn.
But.. don’t worry. Where there is a will, there is always a way. If we cannot increase our income and we absolutely can’t reduce our fixed expenses, then reduce the Variable Expenses, for example eat out less frequently or buy clothes only when we need new one.
This Personal Budget can also influence the way we spend our money, what type/brand of cars can we afford to drive, what kind of house can we afford to live in and so much more.
EdotMembebel: There are so many personal budget in excel sheet templates that you can download fro free from the Internet. Let’s start the new year of 2010 with better financial planning~ Good Luck!