Premium Essay

Personal Budget

In: Business and Management

Submitted By Chrisiukas
Words 917
Pages 4
Personal Budget, Balance Sheet, and Cash Flow Statement Personal Budget, Balance Sheet, and Cash Flow Statement Ann and Jan Stone are married and have no kids. Ann has received her Bachelor’s degree, MBA and now getting her Master’s of Accounting. Jan has not finished his Bachelor’s degree in International business. Jan is a director of revenue in a hotel industry and makes about $89,000 a year. Ann works for Credit Union as a Branch Manager and makes $38,000. Ann is 27 years old and Jan is 30. Major concerns that the couple has is debt. Jan has about $52,000 in credit card debt and he is paying high 20% interest on them. Ann has student loan totaling $60,000 and growing. Another concern the couple has is not having enough cash flow to invest in their small house upgrades. Another common goal this couple has is to save money and successfully invest. Jan and Ann want to have their own business in the future, but have no cash flow to start a business (Primiano, 2012). Following are Ann and Jan Stone personal budget, cash flow and budget.

Monthly budget Financial goals: pay off debt, increase emergency funds Budgeted Amounts Actual Amounts Variance (dollars) (percent)
Projected Inflows (income)
Salary 10,800 100 Projected Outflows
Emergency fund savings 600 6% 600 -
Savings for vacation 200 2% 200 -
Total savings 800 7% 800 - Fixed Expenses
Health insurance 280 3% 280 -
Mortgage 1200 11% 1200 -
ECO pass 35 0% 35 -
Homeowner's insurance 75 1% 75 -
Auto insurance 170 2% 170 -
Car loan payment 480 4% 480 -
Credit card payments 5460 51% 5460 -
Total fixed expenses 7700 71% 7700 - Variable expenses
Food at home 400 4% 350 50
Food away from home 500 5% 420 80
Clothing 200 2% 302 -102
Telephone 170 2% 170 0
Electricity 20 0% 35 -15
Personal care (dry cleaning,…...

Similar Documents

Free Essay

Personal Budget Assumption Mcgraw Hill Connect Case

...Personal Budget School Supplies- This consists of various items needed for school such as books or class supplies like notebooks and pencils. This cost is normally higher during the beginning of the school year and goes down as the school year progresses. Food- This consists of the food I must purchase each day in order to eat my daily meals. I normally eat two meals a day and they are almost always cooked at home. I occasionally eat at the Cafeteria at school so this cost can be variable. Non-food essentials- This consists of any item I use daily as well. Such as shampoo, body wash, face wash, deodorant, toothpaste, shaving cream etc. I use these items everyday and this cost is fixed. Non-food refreshments- This consists of anything I consume that is not a food. Entertainment- This consists of items or services that are purchased for entertainment such as going to the movies or a museum etc. This is done on a fairly consistent basis from week to week. Clothing- Clothing is more of an occasional cost. I normally go out and purchase clothing a few times a year for each season and occasionally will purchase single items throughout the year. Car Expense- This consists of my expenses that go towards my car on a regular basis such as gas and oil changes. This excludes emergency type expenses such as extensive vehicle damage or issues. Charity- This consists of money donated to charity each week. Subscriptions- This consists of my monthly......

Words: 365 - Pages: 2

Free Essay

Budget

...Budget 2013-14: To defend or not to defend Published : Tuesday, 11 June 2013 Mahfuz Kabir Budget 2013-14 has been placed in Parliament for discussion, not for debate per se. At the backdrop of less than projected GDP (gross domestic product) growth, low private investment, low private consumption and less vibration in the domestic economy, there is no hype for the Finance Minister to present something from a 'magic lamp'. The size of the budget with an outlay of Tk 2.22 trillion, although 16 per cent bigger in scale compared to the previous one, is not necessarily a big jump. Can we call this budget overambitious? Perhaps not, because the economy could reach close to the target if the unprecedented violence and shutdowns by political masterminds did not jeopardise the economic potential from the outset of this calendar year. Nevertheless, the fact that growth could cross the 6 per cent mark is no mean achievement. Now the budget's big public investment plan of Tk.722 billion can be seen as a positive instrument for economic expansion in the next fiscal year to tap the unrealised potentials for attracting more private investment.  The revenue target of Tk. 1.74 trillion, a point-to-point growth of 20 per cent, seems to be a bit unrealistic even though NBR has performed well in the recent past by well-achieving the successive targets. Nevertheless, this year the NBR went through considerable stress in attaining target because of lower economic mobility, particularly in the......

Words: 2453 - Pages: 10

Premium Essay

Personal Budget

...Personal Budget, Balance Sheet, and Cash Flow Statement ACC/547 January 21, 2013 Personal Budget, Balance Sheet, and Cash Flow Statement Memo: Some people save less than their financial capacity is and this fact leads them to serious financial problems and lack of financial security. Therefore, successful money management should be a life decision undertaken at the early adulthood in order to plan money distribution effectively that would eventually provide financial prosperity. The purpose of this memo is to analyze my client's financial situation, their personal budget, balance sheet, and cash flow statement and give them recommendations and support for improving their financial situation. My client, John Morgan is a 49 year old engineer who is married and has two dependents. Kate Morgan, John's spouse is a 43 year old teacher and the mother of those two children. My client and his family live in a gorgeous 4-bedroom house, in a nice neighborhood with a good school district. Although, the family leads a peaceful life their financial situation is in a great disarray. Though, John and Kate make together close to $140,000 a year they don't have much of a life savings, or emergency fund, and too much credit card debts. In order to help them understand the significance of saving more money instead of spending it, personal balance sheet, cash flow statement, and budget need to be prepared. Personal balance sheet reflects their assets and liabilities and determines...

Words: 1113 - Pages: 5

Premium Essay

Cause and Effects Not Keepinga Personal Budget

...Determining Causes and Effects Revised Version Personal budgeting is an important factor in regards to successful long term financial stability. Budgeting has many great aspects as well as showing areas of weakness. It can show the truth about your personal financial spending habits, areas that are not looked at enough, and if there are needs for a larger emergency fund. The reality of personal budgeting is that many people potentially do not keep a personal budget for one reason or another. People also don’t consider the negative effect that it could have on one personally and or how it effects the economy. One major reason that an individual does not keep a personal budget would be the lack of knowledge on how to possess a successful budget of their finances. An individual may not know how to properly construct a budget that will help them become financially savvy. The client could be unaware of how to make a budget balance, how to correctly allocate funds, or even which areas are really the important factors. Excel is a great tool for budgeting if you can utilize the application. But if one does not know how to distribute their funds properly, you could come up short when needing money for bill or to fill your gas tank up to get to work to make an income, which turns into a vicious cycle. This lack of information and know how could deter someone from even thinking about budgeting. Not only is lack of knowledge a serious factor, a person could make more money than......

Words: 1224 - Pages: 5

Premium Essay

Budget

...UNION BUDGET 2014 - 2015 UNION BUDGET 2014 - 2015 INDEX o o o o Key Highlights Tax Rates: Direct Taxes Market movements: Equity & Debt Economic update: o o o Budget summary Revenue snapshot Expenditure snapshot Sector updates Financial Sector Mutual Funds o o Equity Market: Outlook and Strategy Debt Market: Outlook and Strategy 1 UNION BUDGET, 2014 - 2015 KEY HIGHLIGHTS On the back of a decisive mandate, the first budget of the NDA government has laid out a broad policy framework in terms of sustained growth along with fiscal prudence. The finance minister has presented the budget amidst challenges like sub 5% growth and high level of inflation. The budget stresses the need to revive growth in manufacturing and infrastructure sectors. It also highlights the importance of improvement in Tax to GDP ratio and Non-tax revenues. • Tax revenues budgeted at 10.6% of GDP in FY15. • Tax budgeted to grow at 20% in FY15 compared with 10% growth seen in FY14 • Assumption of nominal FY15 GDP growth of 13.4%. • Retains fiscal deficit target at 4.1% of GDP. • Increased divestment target of Rs 634 bn • Boost to domestic manufacturing and investments, particularly in infrastructure and export-oriented manufacturing sectors • PPF scheme annual ceiling enhanced to Rs 1.5 Lakh p.a. from Rs 1 Lakh at present • Personal income tax exemption limit raised by Rs 50,000/-, to Rs 2.5 Lakh • Investment limit under section 80C of the Income tax Act raised to......

Words: 4977 - Pages: 20

Premium Essay

Budget

...MEDIA BRIEFING AN ANALYSIS OF THE NATIONAL BUDGET FOR FY2015 06 JUNE 2014 CPD IRBD 2014 TEAM Dr Debapriya Bhattacharya, Distinguished Fellow CPD and, Professor Mustafizur Rahman, Executive Director, CPD were in overall charge of preparing this report as the Team Leaders. Lead contributions were provided by Dr Fahmida Khatun, Research Director; Dr Khondaker Golam Moazzem, Additional Research Director and Mr Towfiqul Islam Khan, Research Fellow, CPD. Valuable research support was received from Mr M Shafiqul Islam, Additional Director, Administration & Finance; Ms Khaleda Akhter, Senior Research Associate; Mr Muhammad Al Amin, Senior Research Associate; Mr Kishore Kumer Basak, Senior Research Associate; Mr Md. Zafar Sadique, Senior Research Associate; Ms Mehruna Islam Chowdhury, Senior Research Associate; Mr Uttam Kumar Paul, Deputy Director, Accounts; Mr Mashfique Ibne Akbar, Research Associate; Ms Farzana Sehrin, Research Associate; Ms Saifa Raz, Research Associate; Ms Umme Salma, Research Associate; Ms Umme Shefa Rezbana, Research Associate; Ms Mahenaw Ummul Wara, Research Associate; Dialogue Associate; Mr Md. Naimul Gani Saif, Research Associate; Mr Mohammad Afshar Ali, Research Associate; Ms Shahida Pervin, Research Associate; Ms Afnan Ashfaque, Research Associate; Mr Mostafa Amir Sabbih, Research Associate; Ms Kashfi Rayan, Research Associate; Ms Shahzeen Hafiz, Programme Associate; Mr Ziad Quader, Research Intern; Ms Nadee Naboneeta Imran, Research Intern and......

Words: 12030 - Pages: 49

Premium Essay

Personal Budget, Balance Sheet, and Cash Flow Statement

...Personal Budget, Balance Sheet, and Cash Flow Statement ACC/547 Memorandum To: Mr. From: Mr. Subject: Personal Budget, Balance Sheet, and Cash Flow Date: Thank you for providing the details required to assist you in developing a comprehensive budget for successfully managing your personal finances and planning in advance for the future. As you have seen, our process of developing this plan for effective day to day management of financial activities required an in depth review of your personal financial records, use them to create your personal financial statements, and to create and implement the plan for spending and saving. In addition to the financial records provided, other factors are considered. These factors are your age of 40 years old, the fact that your education level is a bachelor’s degree, you are single with no dependents, never married, have worked for the same Engineering firm for the past 18 years with a stable and increasing annual salary throughout your career. I further understand that you feel like you are not quite gaining on credit card debt as you had hoped at this point in your life, and your thoughts are beginning to become more serious about your retirement and how you should be preparing, financially. Your goals of being able to retire earlier than your friends and live comfortably can be obtained. Your goal of becoming debt free before you’re 45th birthday is also attainable. This memorandum will provide a brief summary of my......

Words: 1225 - Pages: 5

Free Essay

Budget

...STATES DEPARTMENT OF DEFENSE FISCAL YEAR 2014 BUDGET REQUEST APRIL 2013 OFFICE OF THE UNDER SECRETARY OF DEFENSE (COMPTROLLER) / CHIEF FINANCIAL OFFICER Preface The Overview Book has been published as part of the President’s Annual Defense Budget for the past few years. This continues for FY 2014, but with modifications as proposed by congressional staff. From FY 1969 to FY 2005 OSD published the “Annual Defense Report” (ADR) to meet 10 USC Section 113 requirements. Starting with the President’s FY 2006 Budget, this report was no longer produced. Subsequently, the Overview began to fill this role. This year to ensure compliance with Section 113, new chapters are added to include reports from each Military Department on their respective funding, military mission accomplishments, core functions, and force structure. Key initiatives incorporated in the FY 2014 Defense budget. Our budget is formulated based on aligning program priorities and resources based on the President’s strategic guidance. This year’s budget involves key themes to: achieve a deeper program alignment of our future force structure with resource availability; maintain a mission ready force; continue to emphasize efficiencies by being even better stewards of taxpayer dollars; and continue to take care of our people and their families. Implementing Defense Strategic Guidance. The FY 2014 budget request continues the force structure reductions made in the FY 2013 budget request. Following the President’s......

Words: 74297 - Pages: 298

Premium Essay

Budget

...Chapter 4 – Operating Budgets: A budget can be a process, a document, an accounting ledger, a plan, or a system. Local gov’t budgeting process unique – product of geographical, historical, economic, political and social factors peculiar to that jurisdiction. Budgeting is a unified series of steps to line and implement four functions: ❑ policy development – as policy instrument, CEO and legislative body need to articulate the goals, objectives and strategies that underline the budget – the flip side of proposing policy changes is accountability ❑ financial planning – includes gov’t financial condition; current/past-year trend financial act. by dept or prog; formal revenue est; look to the future to anticipate events/conditions; ensure debt service remains under control (while debt service receives first draw on municipal exp, financial plan set a rational debt service level for multi-year period ❑ service/operations planning – blueprint that governs the amount of service provided ❑ communications – way for decision makers to communicate changes in priorities, rationale for decisions and changes to vision in the future The final step in securing a framework w/in w/c the needs of policy setting, financial planning, service planning and communications can work is the development of quantitative performance measures. Environment/actors dictate the extent to which the linkage occurs and the form of linkage. Four phases of local budget cycle: ❑......

Words: 9179 - Pages: 37

Free Essay

Budget

...Introduction and Background of Budget The Capital Budget of the public sector or sometimes also known as Public Budget concerns how the government plans its revenues and expenditures at the Federal level, State level, and Local government level, to carter for the needs of its development programs and projects. In a democratic society, the division of resources between the public and private sectors is roughly determined by the desires of the electorate. But because it’s such a complex and time-consuming task to acquire adequate political information, the electorate is chronically ignorant. Since the Revolutionary War, democratic system of governance has forever been looking for better ways to inform the public and to design more sophisticated techniques for deciding how best to allocate scarce public resources. Despite the good sense it makes to “budget to a plan”, public expenditures are frequently approved based on who supports what, rather than on a clear understanding of what exactly the expenditures will accomplish. Public Budgeting is not about numbers; it is about making Democratic governance work. During the debates leading to the creation of the American Constitution, taxation and public expenditures were one of the driving forces leading to the creation of our peculiar and complex system of separation of powers and checks and balances. Our various state and local democratic constitutions give the executive branch the power to propose a budget and......

Words: 9430 - Pages: 38

Premium Essay

Budget

...Personal Budget Exercise – MS Excel For a review of the complete rubric used in grading this exercise, click on the Assignments tab, then on the title Personal Budget (Excel) click on Show Rubrics if the rubric is not already displayed. Creating a spreadsheet to track personal expenses is an excellent use of Microsoft Excel. For this exercise, you will create a spreadsheet to enter a personal budget and track actual expenses for the year. You may choose to use real data or create a fictitious budget using a monthly income amount of $3,500 Here are suggested budget categories if you are not using a real budget. At a minimum, you must have 9 budget categories: Housing (mortgage or rent) | Food | Utilities | Miscellaneous | Car payment | Entertainment | Insurance | Gas | Student Loans | Savings | | Requirement | Points Allocated | Comments | 1 | Open Excel and save a blank worksheet with the following name:“Student’s First InitialLast Name Excel” Example: JSmith ExcelSet Page Layout to Landscape | 0.1 | Use Print Preview to review how spreadsheet would print. | 2 | In the worksheet, insert a Custom Header titled, "My Personal Budget." | 0.25 | This Custom Header text must be Arial 14 point, Bold, and be centered on the page. | 3 | Add a custom Footer with your name in the Left Section and automatic pagination in the Right Section. | 0.25 | Text format is Arial 10 point Normal. | 4 | Enter column headings :BUDGET ITEM, PROJECTED COSTS and the 12......

Words: 1769 - Pages: 8

Premium Essay

Budget

...Personal Budget Exercise – MS Excel For a review of the complete rubric used in grading this exercise, click on the Assignments tab, then on the title Personal Budget (Excel) click on Show Rubrics if the rubric is not already displayed. Creating a spreadsheet to track personal expenses is an excellent use of Microsoft Excel. For this exercise, you will create a spreadsheet to enter a personal budget and track actual expenses for the year. You may choose to use real data or create a fictitious budget using a monthly income amount of $3,500 Here are suggested budget categories if you are not using a real budget. At a minimum, you must have 9 budget categories: Housing (mortgage or rent) | Food | Utilities | Miscellaneous | Car payment | Entertainment | Insurance | Gas | Student Loans | Savings | | Requirement | Points Allocated | Comments | 1 | Open Excel and save a blank worksheet with the following name:“Student’s First InitialLast Name Excel” Example: JSmith ExcelSet Page Layout to Landscape | 0.1 | Use Print Preview to review how spreadsheet would print. | 2 | In the worksheet, insert a Custom Header titled, "My Personal Budget." | 0.25 | This Custom Header text must be Arial 14 point, Bold, and be centered on the page. | 3 | Add a custom Footer with your name in the Left Section and automatic pagination in the Right Section. | 0.25 | Text format is Arial 10 point Normal. | 4 | Enter column headings :BUDGET ITEM, PROJECTED COSTS and the 12......

Words: 1765 - Pages: 8

Premium Essay

Budget

...Budgeting: A Guide for Small Nonprofit Organizations A free resource provided by the Virginia Society of Certified Public Accountants Budgeting: A Guide for Small Nonprofit Organizations A free resource provided by the Virginia Society of Certified Public Accountants Introduction • Selecting the budget committee • The task of the budget committee • Setting budget priorities and realities — revenues • Setting budget priorities and realities — expenses and costs • When to prepare the budget • A budget for cash flow • A budget for capital expenditures — bought or received • Restricted grants • Changes to the budget • Conclusions Introduction Nonprofit organizations (NPO) wrestle continually with maintaining and improving their operations, especially during today’s uncertain economy. In short, NPOs must constantly strive for sustainability. A well-planned budget will focus on the primary goals and objectives of the organization and provide financial and programmatic adaptability — key ingredients to maximize sustainability. Every volunteer brings to a small NPO the enthusiasm and interest necessary to do a good job. These volunteers are critical to an NPO’s success, because most small NPOs lack the funds necessary to seek and pay for professional guidance in the business world. This guide is written to present the theories and practicalities of budgeting for the small NPO staffed by volunteers, whose expertise do not always......

Words: 3825 - Pages: 16

Premium Essay

Budget

...Key Features of Budget 2012-2013 http://indiabudget.nic.in Key Features of Budget 2012-2013 APPROACH TO THE BUDGET  For Indian economy, recovery was interrupted this year due to intensification of debt crises in Euro zone, political turmoil in Middle East, rise in crude oil price and earthquake in Japan. GDP is estimated to grow by 6.9 per cent in 2011-12, after having grown at 8.4 per cent in preceding two years. India however remains front runner in economic growth in any cross-country comparison. Monetary and fiscal policy response for better part of past 2 years aimed at taming domestic inflationary pressure. Growth moderated and fiscal balance deteriorated due to tight monetary policy and expanded outlays. Indicators suggest that economy is turning around as core sectors and manufacturing show signs of recovery. At this juncture, it is necessary to take hard decision to improve macroeconomic environment and strengthen domestic growth drivers. Twelfth Five Year Plan to be launched with the aim of “faster, sustainable and more inclusive growth”. Five objectives identified to be addressed effectively in ensuing fiscal year. If India can build on its economic strength, it can be a source of stability for world economy and a safe destination for restless global capital.         OVERVIEW OF THE ECONOMY  GDP growth estimated at 6.9 per cent in real terms in 2011-12. Slowdown in comparison to preceding two years is primarily due to deceleration in......

Words: 4603 - Pages: 19

Premium Essay

Budget

...Prelude The Union Budget for 2012-13 (FY13) is to be presented in the Parliament on 16th March. As every year, the budget will be an event that would signal the direction set forth for the growth path of the economy. Global as well as the domestic investors would also be looking for signals. The attempt of the government to push for higher growth without sound economic fundamentals has further resulted in higher inflation, increased current account deficit, tighter inter-bank liquidity, and sub-optimal utilization of the tax payers’ money. The major expectations that surround the budget can be summarized as below: Sustainability in curbing government expenditure to check on the imbalances created by the fiscal deficit, without curbing consumption; Managing current account deficits and trade imbalances; Direction to catapult private investment, gross capital formation; Managing supply side constraints; and Empowering the under privileged with skills and knowledge for self-sustenance. A revival in investment cycle should be the way forward for the economy to drive a revival in productivity, rather than depending on consumption to drive productivity. Further, the supply side constraints, if exist for a prolonged period, would cripple the economy and the government would require greater fiscal and......

Words: 7509 - Pages: 31

Slender Man (2018) streaming | Season 2 Episode 5 Stone's Throw | Clássicos