Personal Home Budget
Calculator and Interactive Analysis

Examples – Tutorial

Page 5(of 8)

Many budget warnings might appear in the “Analysis of your budget” section located a bit further down from the “Calculate and Analyze” button. Most importantly, note the warning about not accounting for all expenses. Until you make a budget on the worksheet that the calculator knows includes all income and all expenses you will only see messages that you have not accounted for all expenses, not accounted for all income or that you did a good job making a budget to account for all items. At this stage, the most important thing will be accounting for all personal budget expenses.
Now scroll back up to the top, look at the projected expenses field. The program has adjusted that number for you. $3609 appears as a prediction from the budget analysis program. Tom sits back and says “whoa!” Can it be his expenses projection was $1000 off? He knows something has been off in his life so he proceeds with the budget calculator program. At this stage most people go through the list on the budget worksheet and think about where they spent money, especially cash. Tom spends about $5 per day on lunch at work, 20 work days that month; he adds $100 to the lunch line. He does get a coffee on the way into work every day, $2.50 there for a $50 total for 20 days. Movie rentals, maybe 10 at $5, so $50 on that line, other entertainment, beer-oh yes, $75 out drinking with the boys, wait, $100 including wings and nachos, he lists it on the “Other Entertainment” line. Lottery, sure a ticket or two every day, but lots a winners too. Tom does some hard analysis and adds $100 on the lottery line to account for his net losses. Weekend trips, well they did go to Times Square for New Year’s Eve and stayed there for a day or two, he adds $250 on that line. Tom starts to think maybe he shouldn’t put that because New Year’s Eve represents a one time event, but they did something for Thanksgiving and Valentine’s Day and Tom understands that no matter what the particular item is, he spends that much each month. “Prescription Medications”, OK, but that’s his personal business, he adds $50 there.

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