Personal Home Budget
Calculator and Interactive Analysis

Examples – Tutorial

Page 8(of 8)

Now comes the time to look at more major changes. Instead of cutting so many daily items you think about changing to a cheaper car. Make the car payment $500, which may also lower auto insurance to $100. Move the ring item to the paid by cash column, put back your cable entry $200 for some entertainment items. If you want more of the other items you cut the car payment down to $400. Now you have one complimentary message about paying down your debt, but another about living beyond your means and negative cash flow. The program reports this because the only reason you have money in the budget for paying down debt is the cash from gifts. Imagine now that you get a $350/month raise at work. Readjust all figures to reflect this new income instead of the family gifts and you will just get a good job message.

I would find an outcome like this quite usual; a person starts by not understanding what they spend and discovers that a combination of reducing a major bill and cutting some smaller daily items balances their budget. In other cases where nothing can be cut it may be that a spouse has to begin working or someone needs to take a second or third job. In rare cases the only choice may be a move to a cheaper house or cheaper city.

Below the budget warning messages you will find options for additional help, mostly free consultations. Now that you were able to make a budget to show what you really spend and created a new budget to show how you must proceed in the future you should have a better idea of areas you need help. Perhaps the only way to make a balanced budget involved cutting credit card payments below the minimum required, you may need professional help to eliminate debt either through settlement at a discount or bankruptcy. Some people may not have been able to create a balanced budget or feel they want to work with a budget professional on how to change their spending habbits. You will see an option for professional budget help too. You may check as many options for help as you wish.

At the top of the personal budget calculator you will find buttons that allow you to create a saved version of your budget. These saved budgets can be retrieved later so that you can work on personal budgets over several sessions, compare months to see how your real spending habbits might be changing from month to month or so that a budget professional can access your worksheet data and help you establish a new balanced budget.

For retirement budget calculation start by either:
A. Go to our retirement calculator page and figure out how much you need to save for retirement. Then come back to the budget page and make sure your existing budget accounts for all items just as in the debtor example throughout this personal budget tutorial. Once you have the real picture of what your current spending patterns are you can proceed to calculate your future personal budget. When engaging in the future plan you will try to include line items for savings and/or retirement that add up to the level suggested by the retirement calculator.
B. Use the budget calculator to figure out what you really spend each month. With this as your entry for the money you need to receive each month in retirement run the retirement calculator. See what the retirement calculator outputs as the money you need to budget for savings each month. Go back to example A. above and finish the retirement budget process.

Good luck with the calculation, analysis and planning of your personal home budgets!

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