Sample Home Budget

Category | Approx. amounts allocated | Percentage | | | Food | 8,000 | 20% | | | | | | | | Medical* | 3,000 | 7.5% | | | Education** | 10,000 | 25% | | | Entertainment and Recreation | 3,000 | 7.5% | | | Monthly instalment of Car | 1,000 | 2.5% | | | Automobile fuel Charges | 2,000 | 5% | | | Investment | 8,000 | 20% | | | Miscellaneous Expenses*** | 3,000 | 7.5% | | | Total | 38,000 | 95% | | | Savings**** | 2,000 | 5% | | | | | | | | | | | | | | | | | | | | | | |
Mr. Manwani has total monthly disposable income of Rs 40,000. He has a family of 5 members, with 3 school going children and his wife, who is not working.
*Mr. Manwani is diabetic, so his monthly medicines cost Rs 2000, whereas another 1000 Rs are spent on other miscellaneous expenses caused due to ill heath of children and wife, like viral and other small infections. **Education expenses comprise of school fees (divided monthly), plus tuition fees and school bus fees and the stationery.
***Miscellaneous expenses are those expenses which are caused due to the variation in these approx.. amounts allocated to various categories.
**** The amount of savings increase or decrease as per the changes in these amounts, which are caused due to price change of various commodities.

Note : 1. This budget will operate till the income level is constant.
2.This budget will work till the general trend of prices remain the same. As and when heavy inflation strucks the economy, this budget will fail to operate.
3. This budget will work when there are no great changes in the routined lives of the people under study, like long tour plans, or any member being struck by any major disease