MY HOME BUDGET
Arun S. H.
Copyright © 2011 by Arun S. H.
Published at Smashwords
FOREWORD
The estimates are low. Yes, very few people are known to take the trouble to have their private finances in good order.
In most cases, most people are content to make a rough projection of their spending, without taking pains to put in place a mechanism aimed at some control. Clearly, there is a need to improve the system. Some form of effort, to get things organized, might be of assistance.
In this booklet, I have attempted to relate my own experience on the subject, hence the title “My Home Budget”. It may be divided into 4 sections: Introductory, explanatory, exercises, and closing.
Much effort had been expended to promote ease of understanding. Perhaps teenagers and those older, would find some benefit. This may in turn enable them to formulate or upgrade their system accordingly.
The limitation is that more complex matters related to savings, investments, loans, etc. are not discussed at length. The focus is on daily spending and cash balancing.
If you feel that it still meets your desired goal, then this booklet may be of some use to you and those around you.
You can treat this as a beginning. Later on, it may be your turn to work for a better system, so that more people would turn over a new leaf. Who knows, over time people can no longer talk of estimates being low.
CONTENT
Introduction………………………….........................................................................04
Effort to Upgrade……………………..................................................................04
A Timely Remedy……..……………………….........................................................05
Dismantling Public Apathy…..……………….……............................................06
To Manage More Than One Budget ?........................................................................06
Budget Tools.........................................................................................................07
Introduction to Table 1….......…………....................................................................07
A Simple Budget..…………...………..................................................................08
Dissimilar budgets………………..............................................................................08
Budgets of different people..….............................................................................09
Budgeting throughout life...........................................................................................10
Preparing the budget..............................................................................................10
Look at a budget.........................................................................................................12
Basis of estimates...................................................................................................13
Budget 'Blues'.............................................................................................................14
Summing up……...................................................................................................15
Introduction to Table 2...............................................................................................16
Example of table.....................................................................................................16
Explanation of table/ columns....................................................................................18
First exercise...........................................................................................................20
Table with transactions...............................................................................................20
Things to observe...................................................................................................21
Transactions of day two..............................................................................................22
Table after day two................................................................................................23
3rd day's transactions...................................................................................................23
Table after 3rd day's transactions............................................................................24
Final day's exercise.....................................................................................................24
Table after 4th day's transactions………………………………………………....25
End of exercises..........................................................................................................25
Closing the budget……………………………………………………………….26
Widening applicability of table 2……………………………………………..…….27
Some reminders and tips........................................................................................28
Closing.……...............................................................................................................29
INTRODUCTIONS
Excuse me, do you have a budget??
Everyone needs to keep watch on his money. As the shepherd keeps an eye on his flock, each of us is the custodian of his money. In this role do we have a plan to ensure the accomplishment of our mission?
Everybody is the architect of his own destiny. Good control over money is an important aspect of life. All of us should be capable of wisely using his money for the common good, benefiting self, family and society. In reality, most people in all walks of life, leave things largely to chance, and grope in the dark.
Me? At school, I and most other students were birds of a feather-we were unable to have or to keep a proper budget. As you can guess, the modest amount of pocket-money almost always never lasted till the end of the month. Sad memories linger: I would be quite penniless by the middle of the month. Imagine the misery: spend in haste, repent at leisure. The same scenario regularly repeated itself throughout the stay at the boarding school. The problem was compounded by the absence of any classes, guidance or reading material.
EFFORT TO UPGRADE
After school, I decided to put my act together. Attending accounting class in college, I used some free time to draw a columnar structure that facilitated a record of daily spending. You see, previously at school, the concept of budgeting consisted only of estimates for the monthly spending. The actual spending would then be left to whims, tastes, and temperament, with no monitoring.
You deserve a pat on the back. By taking a glimpse into this small booklet, you have shown interest in the subject matter and this would hopefully benefit you immensely .As the saying goes, a stitch in time saves nine. It’s like steering the boat away from turbulent waters.
My own predicament also took a turn for the better soon after the upgrading of the budget system. As a result, with minor modifications the same system had been with me ever since. As they say, success is the sum of small efforts, repeated day in and day out.
A TIMELY REMEDY
That was in the late 60s.The mechanism performed like clockwork. Fearing for the future, I was compelled to make hay while the sun shines: to budget well and to stick to the stated amounts when spending. How true it is to say:
No pain no gain. In hindsight, I am glad to have taken the initiative.
As a result, the habit of keeping a budget had enabled me to adopt a number of positive values. Also, the practice of daily cash balancing gives forth a unique feeling of satisfaction and well-being. You should try to enjoy the exhilaration of balancing, which repeats itself daily and does not lose its shine over time. It is like clambering up a hill: reaching the top is worth all the struggles of the climb.
Once you make a start, you are creating a habit and the willingness to go the extra mile. Remember, as you sow so shall you reap.