MATH'S PROJECT- HOME BUDGET-Vidhi chokhani Xth Roll no-05 ACKNOWLEDGEMENT I would like to thank my Math's Sir , Vilas Wagh , for giving me such an interesting project .i have learnt a lot about planning a house in this project . I also thank my parents for their constant help and support for me during this project. CONTENTS What is Budget? Types of Budget What is Personal Budget? Tools used for creating a personal budget Following a Budget Home Budget for Chopra Family Example For the Month of January Bar graph Pie chart Pie chart Conclusion Bibliography . . In other terms. 2. that is. construct a model of how our business might perform financially if certain strategies.WHAT IS BUDGET? A budget is a list of all planned expenses and revenues. Enable the actual financial operation of the business to be measured against the forecast. Provide a forecast of revenues and expenditures. a budget is an organizational plan stated in monetary terms. which uses a budget line to illustrate the trade-offs between two or more goods. It is a plan for saving and spending. A budget is an important concept in microeconomics. the purpose of budgeting is to: 1. In summary. events and plans are carried out. The production budget also estimates the various costs involved with manufacturing those units. . Production budget: Product oriented companies create a production budget which estimates the number of units that must be manufactured to meet the sales goals. 2. including labor and material. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing. Marketing budget: The marketing budget is an estimate of the funds needed for promotion. 4. It is used to create company sales goals. Sales budget: The sales budget is an estimate of future sales. and public relations in order to market the product or service. often broken down into both units and dollars.TYPES OF BUDGET Budget types 1. It usually covers a period in the short term future. Cash Flow/Cash budget: The cash flow budget is a prediction of future cash receipts and expenditures for a particular time period. advertising. 3. advertising. Project budget: The project budget is a prediction of the costs associated with a particular company project. and other related expenses. These costs include labor. Expenditure budget: A budget type which include of spending data items. Revenue budget: The Revenue Budget consists of revenue receipts of government and the expenditure met from these revenues. materials.4. Tax revenues are made up of taxes and other duties that the government levies. Marketing budget: The marketing budget is an estimate of the funds needed for promotion. with task budgets assigned to each. The project budget is often broken down into specific tasks. and public relations in order to market the product or service. 5. 6. 7. . There are several methods and tools available for creating. Past spending and personal debt are considered when creating a personal budget. savings an debt repayment.WHAT IS PERSONAL BUDGET? A personal budget is a finance plan that allocates future personal income towards expenses. . using and adjusting a personal budget. Spreadsheet software Spreadsheet software. a budget's accuracy is only as good as the accuracy of the updated budget data. For example. budget spreadsheets are used to keep track of income and expenses. an old budget that does not reflect actual income or expenses is of little use to a current budget. helps to arrange budgets according to need and performs calculations easily with rudimentary formulas. Simpler still are the pre-formatted household budgeting or bookkeeping forms that creates a budget by filling in the blanks.TOOLS USED FOR CREATING A PERSONAL BUDGET Several tools are helpful for constructing a personal budget. and optionally. Such budgets can be organized in three-ring binders or a file cabinet. iWork Numbers or OpenOffice. Computer generated budgets have become commonly used as they replace the need to rewrite and recalculate the budget every time there is a change. The major reason most people discontinue using budget spreadsheets that don't offer date-shifting is that the information needs to be reentered or moved at the end of each month.org Calc. a calculator. Regardless of the tool used. . Pencil and paper A simple budget can be written on a piece of a paper with a pencil. including Microsoft Excel. Spreadsheets are still excellent for complex budgets and planning. These programs can categorize past expenses and display monthly reports that are useful for budgeting future months. the cash on hand. this type of software utilizes a known amount of money. to give the user information regarding what's left to spend in the current month. This method eliminates some of the guess work associated with forecasting what a person might receive for income when it comes to allocating budgeted money. Like money-management software. and Gnu Cash are designed to keep track of individual account information. have been devised to help manage personal finances. such as checking. Money-management software Some software is written specifically for money management. such as Mint. savings or money-market accounts. Unlike typical budgeting that allocates future personal income towards expenses. Spending-management software Spending-management software is a variation of money-management software. Microsoft Money (discontinued). savings and debt repayment. Money dance. Money-management websites Several websites. Some may have a privacy policy governing the use and sharing of supplied financial information. Products such as Fortora Fresh Finance. . Quicken. some spending- management software packages can connect to online bank accounts in order to retrieve a current status report.com and Thrive. With envelope budgeting. in an envelope marked for that purpose. you have three options: 1) you do not make the purchase. Optionally. biweekly. Otherwise. .e. 3) you sacrifice another category by moving money from its associated envelope. etc. If the money is there. As with allocation. the amount of money left to spend in a given category can be calculated at any time by counting the money in the envelope.) a certain amount of money is set aside for a specific purpose. Envelopes Envelope Accounting or the is a method of budgeting where on a regular basis (i. there are various methods available for following a budget. if you do not spend everything in the envelope this month then the next allocation adds to what is already there resulting in more money for the next month. each envelope can be marked with the amount due each month (if a bill is known ahead of time) and the due date for the bill. all is well. monthly. the focus for personal budgeting turns to following the budget.FOLLOWING A BUDGET Once a budget is constructed and the proper amounts are allocated to their proper categories. or category. Then anytime you make a purchase you look in the envelope for the type of purchase being considered to see if there are sufficient funds to make the purchase. The flip side is true as well. 2) you wait until you can allocate more money to that envelope. All expenses are allocated to appropriate cost centres based on a set of business rules outlined in the book Wake Up or Die Poor The ratio of fixed expenses to variable expenses to savings make up a family's pie. like Budget-Master. Cost centre targets are based on percentages of monthly net revenue (household gross income minus taxation and employee deductions). A good way to follow and manage a budget when using a spreadsheet that offers date-shifting is to set the current month a few months before the current month along the 12-month cycle. When fixed expenses make up more than 50% of a household's net revenue. variable expenses and savings. Cost centres are broken out into three categories of spending: fixed expenses. . Spreadsheet budgeting with date-shifting Budget spreadsheets with date-shifting.com. income and expense. That-CO is in the "prickly" pie. plan. Quinn-CO The Quinn-CO method of budgeting is based on a Canadian business model where categories of expenses are set up as cost centres. typically offer a detailed view of a 12 month. . No. Designation of earning members : Grandfather: Manager in ICICI Bank Father : Executive director in Mehta & Mehta Company . of Vehicals:2 9. of Helping Hands at home:2 (1 part-time. No. No. (1 four wheeler. of Family members:6 3. No. of Earning Members of the Family: 2 4. EXAMPLE 1.1 two wheeler) 10. of children studing:2 5. House owned 11. No. of Telephone lines (Land lines):1 7. of Mobile phones:4 8. No. Family’s Name : Chopra’s 2.1 full time) 6. No. FOR THE MONTH OF JANUARY CATEGORY MONTHLY AMOUNT TOTAL INCOME 75000 TAXES 15000 ACTUAL INCOME 60000 HOUSE MAINTAINANCE 4000 GROCERRY+FRUITS+VEGE 12000 TABLES MILK 5000 ELECTRICITY+WATER 2500 CONVEYANCE 1000 . CATEGORY MONTHLY AMOUNT CLOTHING 2500 EDUCATION+CLASSES 5000 ENTERTAINMENT+PRESETATIO 2000 N AUTOMOBILES 2000 TELEPHONE+MOBILE 2000 HOME HELPERS 1500 REPAIRS 500 CABLE+INTRNET CONNECTION 500 TRAVELLING 2000 LAUNDARY 500 SHOPPING 2500 STATIONERY 500 MEDICAL 5000 GRAND TOTAL 51000 SAVINGS 9000 YEARLY SAVINGS 10800 . BAR GRAPH COMPARING ALL THE EXPENSES 12000 10000 8000 6000 4000 2000 0 . PIE CHARTCOMPARING ALL THE EXPENSES HOUSE MAINTAINANCE GROCERRY+FRUITS+VEGETABLES MILK ELECTRICITY+WATER CONVEYANCE CLOTHING EDUCATION+CLASSES ENTERTAINMENT+PRESETATION AUTOMOBILES TELEPHONE+MOBILE HOME HELPERS REPAIRS CABLE+INTRNET CONNECTION TRAVELLING LAUNDARY SHOPPING STATIONERY MEDICAL . PIE GRAPH COMPARING THE SAVINGS AND ACTUAL AMOUNT ACTUAL INCOME SAVINGS . The yearly savings for Chopra family is Rs. 45000.the tax to be paid is the 10% of the total income . .25000. that is Rs. The actual income is (Total Income . The savings after all expenditure is Rs.540000. The actual income is Rs.225000.Taxes ).CONCLUSION Total income for Chopra Family is Rs.250000. wikipedia.org/wiki/Personal_budget http://en.microsoft.aspx http://office.com/en-us/templates/family- monthly-budget-planner-TC001023342.org/wiki/Budget http://www.html http://office.BIBILIOGRAHY http://en.microsoft.com/ExcelTemplates/personal -monthly-budget.aspx .vertex42.wikipedia.com/en-us/templates/family- monthly-budget-planner-TC001023342.