Scribd
Upload
11 views2 pages

How To Create A Simple Personal Budget: Category Amount ( ) Income 20,000 Rent 6,000 Food 4,000

This document provides a step-by-step guide to creating a simple personal budget, emphasizing the importance of tracking income and expenses to avoid overspending and save for future goals. It outlines the process of calculating monthly income, listing expenses, and adjusting spending based on surplus or deficit. Additionally, it offers tips for budgeting effectively, such as setting aside emergency funds and reviewing the budget regularly.

Uploaded by

Prakash Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
11 views2 pages

How To Create A Simple Personal Budget: Category Amount ( ) Income 20,000 Rent 6,000 Food 4,000

This document provides a step-by-step guide to creating a simple personal budget, emphasizing the importance of tracking income and expenses to avoid overspending and save for future goals. It outlines the process of calculating monthly income, listing expenses, and adjusting spending based on surplus or deficit. Additionally, it offers tips for budgeting effectively, such as setting aside emergency funds and reviewing the budget regularly.

Uploaded by

Prakash Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

How to Create a Simple Personal Budget

Introduction:
A personal budget helps you track your income and expenses, avoid overspending, and
save for future goals.

Step-by-Step Guide:

1. Calculate Your Monthly Income:

o Include salary, allowances, scholarships, or any regular earnings.

2. List All Monthly Expenses:

o Fixed: Rent, utilities, subscriptions

o Variable: Food, transportation, entertainment, shopping

3. Subtract Expenses from Income:

o Income – Expenses = Surplus (savings) or Deficit (overspending)

4. Adjust Spending:

o If you have a deficit, identify non-essential expenses to reduce.

o If you have a surplus, allocate some to savings or investments.

5. Track and Review:

o Use apps (like Mint or YNAB), spreadsheets, or a notebook to monitor your


budget.

o Review monthly and adjust as your income or expenses change.

Sample Budget Table:

Category Amount
(₹)

Income 20,000

Rent 6,000

Food 4,000
Utilities 1,000

Transport 1,500

Entertainmen 1,000
t

Savings 2,000

Miscellaneou 1,500
s

Total 17,000
Expenses

Surplus 3,000

Tips:

 Set aside a portion of income for emergencies.

 Avoid impulse purchases by waiting 24 hours before buying non-essentials.

 Review your budget regularly to stay on track.

You might also like