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MATH'S PROJECT- HOME BUDGET

-Vidhi chokhani Xth Roll no-05

ACKNOWLEDGEMENT

I would like to thank my Math's Sir , Vilas Wagh , for giving me such an interesting project .i have learnt a lot about planning a house in this project . I also thank my parents for their constant help and support for me during this project.

CONTENTS
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What is Budget? Types of Budget What is Personal Budget? Tools used for creating a personal budget Following a Budget Home Budget for Chopra Family Example For the Month of January Bar graph Pie chart Pie chart Conclusion Bibliography

WHAT IS BUDGET?
A budget is a list of all planned expenses and revenues. It is a plan for saving and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms. In summary, the purpose of budgeting is to: 1. Provide a forecast of revenues and expenditures, that is, construct a model of how our business might perform financially if certain strategies, events and plans are carried out. 2. Enable the actual financial operation of the business to be measured against the forecast.

TYPES OF BUDGET
 1.

2.

3.

4.

Budget types Sales budget: The sales budget is an estimate of future sales, often broken down into both units and dollars. It is used to create company sales goals. Production budget: Product oriented companies create a production budget which estimates the number of units that must be manufactured to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, including labor and material. Cash Flow/Cash budget: The cash flow budget is a prediction of future cash receipts and expenditures for a particular time period. It usually covers a period in the short term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing. Marketing budget: The marketing budget is an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service.

4.

Marketing budget: The marketing budget is an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service. 5. Project budget: The project budget is a prediction of the costs associated with a particular company project. These costs include labor, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each. 6. Revenue budget: The Revenue Budget consists of revenue receipts of government and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the government levies. 7. Expenditure budget: A budget type which include of spending data items.

WHAT IS PERSONAL BUDGET?

A personal budget is a finance plan that allocates future personal income towards expenses, savings an debt repayment. Past spending and personal debt are considered when creating a personal budget. There are several methods and tools available for creating, using and adjusting a personal budget.

TOOLS USED FOR CREATING A PERSONAL
BUDGET

Several tools are helpful for constructing a personal budget. Regardless of the tool used, a budget's accuracy is only as good as the accuracy of the updated budget data; an old budget that does not reflect actual income or expenses is of little use to a current budget. Computer generated budgets have become commonly used as they replace the need to rewrite and recalculate the budget every time there is a change. Pencil and paper

A simple budget can be written on a piece of a paper with a pencil, and optionally, a calculator. Such budgets can be organized in three-ring binders or a file cabinet. Simpler still are the pre-formatted household budgeting or bookkeeping forms that creates a budget by filling in the blanks.

Spreadsheet software

Spreadsheet software, including Microsoft Excel, iWork Numbers or OpenOffice.org Calc, helps to arrange budgets according to need and performs calculations easily with rudimentary formulas. For example, budget spreadsheets are used to keep track of income and expenses. The major reason most people discontinue using budget spreadsheets that don't offer date-shifting is that the information needs to be reentered or moved at the end of each month. Spreadsheets are still excellent for complex budgets and planning.

Money-management software Some software is written specifically for money management. Products such as Fortora Fresh Finance, Money dance, Quicken, Microsoft Money (discontinued), and Gnu Cash are designed to keep track of individual account information, such as checking, savings or money-market accounts. These programs can categorize past expenses and display monthly reports that are useful for budgeting future months.  Money-management websites Several websites, such as Mint.com and Thrive, have been devised to help manage personal finances. Some may have a privacy policy governing the use and sharing of supplied financial information.  Spending-management software Spending-management software is a variation of money-management software. Unlike typical budgeting that allocates future personal income towards expenses, savings and debt repayment, this type of software utilizes a known amount of money, the cash on hand, to give the user information regarding what's left to spend in the current month. This method eliminates some of the guess work associated with forecasting what a person might receive for income when it comes to allocating budgeted money. Like money-management software, some spendingmanagement software packages can connect to online bank accounts in order to retrieve a current status report.

FOLLOWING A BUDGET

Once a budget is constructed and the proper amounts are allocated to their proper categories, the focus for personal budgeting turns to following the budget. As with allocation, there are various methods available for following a budget. Envelopes

Envelope Accounting or the is a method of budgeting where on a regular basis (i.e. monthly, biweekly, etc.) a certain amount of money is set aside for a specific purpose, or category, in an envelope marked for that purpose. Then anytime you make a purchase you look in the envelope for the type of purchase being considered to see if there are sufficient funds to make the purchase. If the money is there, all is well. Otherwise, you have three options: 1) you do not make the purchase; 2) you wait until you can allocate more money to that envelope; 3) you sacrifice another category by moving money from its associated envelope. The flip side is true as well, if you do not spend everything in the envelope this month then the next allocation adds to what is already there resulting in more money for the next month. With envelope budgeting, the amount of money left to spend in a given category can be calculated at any time by counting the money in the envelope. Optionally, each envelope can be marked with the amount due each month (if a bill is known ahead of time) and the due date for the bill.

Spreadsheet budgeting with date-shifting Budget spreadsheets with date-shifting, like Budget-Master.com, typically offer a detailed view of a 12 month, income and expense, plan. A good way to follow and manage a budget when using a spreadsheet that offers date-shifting is to set the current month a few months before the current month along the 12-month cycle.  Quinn-CO The Quinn-CO method of budgeting is based on a Canadian business model where categories of expenses are set up as cost centres. Cost centres are broken out into three categories of spending: fixed expenses, variable expenses and savings. Cost centre targets are based on percentages of monthly net revenue (household gross income minus taxation and employee deductions). All expenses are allocated to appropriate cost centres based on a set of business rules outlined in the book Wake Up or Die Poor The ratio of fixed expenses to variable expenses to savings make up a family's pie. When fixed expenses make up more than 50% of a household's net revenue, That-CO is in the "prickly" pie.

EXAMPLE
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Family’s Name : Chopra’s No. of Family members:6 No. of Earning Members of the Family: 2 No. of children studing:2 No. of Helping Hands at home:2 (1 part-time,1 full time) No. of Telephone lines (Land lines):1 No. of Mobile phones:4 No. of Vehicals:2 (1 four wheeler;1 two wheeler) House owned Designation of earning members : Grandfather: Manager in ICICI Bank
Father : Executive director in Mehta & Mehta
Company

FOR THE MONTH OF JANUARY
CATEGORY TOTAL INCOME TAXES ACTUAL INCOME HOUSE MAINTAINANCE GROCERRY+FRUITS+VEGE TABLES MILK MONTHLY AMOUNT

75000 15000 60000 4000 12000 5000 2500 1000

ELECTRICITY+WATER
CONVEYANCE

CATEGORY CLOTHING EDUCATION+CLASSES ENTERTAINMENT+PRESETATIO N AUTOMOBILES TELEPHONE+MOBILE HOME HELPERS REPAIRS

MONTHLY AMOUNT 2500 5000 2000 2000 2000 1500 500

CABLE+INTRNET CONNECTION TRAVELLING
LAUNDARY SHOPPING STATIONERY MEDICAL GRAND TOTAL SAVINGS

500 2000
500 2500 500 5000 51000 9000

YEARLY SAVINGS

10800

BAR GRAPH COMPARING ALL THE EXPENSES
12000 10000

8000

6000

4000

2000

0

PIE CHARTCOMPARING ALL THE EXPENSES
HOUSE MAINTAINANCE GROCERRY+FRUITS+VEGETABLES MILK ELECTRICITY+WATER CONVEYANCE CLOTHING EDUCATION+CLASSES ENTERTAINMENT+PRESETATION AUTOMOBILES TELEPHONE+MOBILE HOME HELPERS REPAIRS CABLE+INTRNET CONNECTION TRAVELLING LAUNDARY SHOPPING STATIONERY MEDICAL

PIE GRAPH COMPARING THE SAVINGS AND ACTUAL AMOUNT

ACTUAL INCOME SAVINGS

CONCLUSION
Total income for Chopra Family is Rs.250000.the tax to be paid is the 10% of the total income , that is Rs.25000.  The actual income is (Total Income - Taxes ). The actual income is Rs.225000.  The savings after all expenditure is Rs. 45000.  The yearly savings for Chopra family is Rs.540000.

BIBILIOGRAHY
http://en.wikipedia.org/wiki/Personal_budget  http://en.wikipedia.org/wiki/Budget  http://www.vertex42.com/ExcelTemplates/personal -monthly-budget.html  http://office.microsoft.com/en-us/templates/familymonthly-budget-planner-TC001023342.aspx  http://office.microsoft.com/en-us/templates/familymonthly-budget-planner-TC001023342.aspx