Friday, March 26, 2010
Budgeting
Budgeting is a need for every individuals. It allows you to look at the amount left for savings, investing or entertainment.
One may one to start up with saving 50%
Budgeting starts from daily expenditure . Food, transport, internet, hand phone bills
Calculation monthly of fixed expenses
: HAND PHONE (60)
: INTERNET (30)
: TRANSPORT (180)
: FOOD (300)
PER MONTH 600
PER DAY 20
Thus this transit to fixed expenses of 20 per day
Example individuals with $1000 per month one can still left with
1000 - 600 = $400 for cashflow remained on variable expense or investment
assuming saving of 50% and 50% for variable entertainment(lottery, dating and good food)
one still can save 200 dollars per month
results should get savers to increase their cashflow remained on % saved and decreased their % spent
What to do with the 200 saved or 50% of net cash remained? we shall discuss again
:)
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