Asked Nov 8, 2019

how to keep a realistic budget with personal economy?


Expert Answer

Step 1

The realistic budget that can be created with personal economy are:

Get all the financial statements:

Include the financial statements like bank statements, accounts for investment, utility bills, and other information regarding a source of expense or income. One of the most important way in budget-making process is to create an average on a monthly basis, so more the information the better.

Record all the income statement:

If the person is employed on her own or have any other source of income, record all these. If the income is in the form of a regular pay check where the taxes are deducted, then the net income concept should be used. This is the record of total income monthly.

Step 2

List of monthly income should be recorded

Mention and record all the expected expenses of the month. It might include groceries, car payment, insurance payments, interest payments, entertainment, regular savings etc. Mostly, includes all the daily expenditures.

Expenses should be divided into two parts

Fixed cost that includes the costs that you ...

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