Personal Finance Budget Plan

Topics: Personal finance, Investment, Finance Pages: 2 (453 words) Published: November 26, 2012
| Personal Financial Planning Budget|
10/11/2012| PFP-110-120A-02 Phase I Individual Project|

A personal budget is a financial plan of an individual’s or household’s income and expenses over a given period, typically one month (www.careeredonline.com). The budgeting process involves estimating future results. In order to prepare this particular budget, the previous month is analyzed. This process helps to understand how and where the money is going all month. The bills that need paid out of a $4.040.00 income, were as follows: * Income - $4,040.00

* Taxes Taken Out Before Bring Home Income - $40.00
* Mortgage – not discretionary
* Utilities - $190.00 – some discretion can be applied
* Groceries - $400.00 – some discretion can be applied
* Auto Insurance - $120.00 –not discretionary
* Car Payment - $250.00 – not discretionary
* Entertainment - $400.00 – 100% discretionary
* Savings - $168.00 – preferably not discretionary
* -------------------------------------------------
Child Care - $360.00 – not discretionary
* Total That Is Left - $1,512.00

Most of the bills are not discretionary except the entertainment, and this can get cut back on an extreme amount. Going places and buying things that are not necessary could save money to add to the savings. The budget had no risk after paying the bills; however the money that is left could be put into an investment that is analyzed before investing in it. A personal financial budget can provide guidance for anyone with their financial management, which is a type of a management that deals with the financial matters of the individual’s or household’s income and expenses (www.wikipedia.com). Having a personal financial budget can actually help an individual’s credit score. If all of the bills are paid on time, then it looks good to the credit bureau. When going to purchase something on credit, a business will look to find if all...
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