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
 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
 Budget types
1. 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.
2. 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.
3. 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.
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.
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 spending-
management 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. Family’s Name : Chopra’s
2. No. of Family members:6
3. No. of Earning Members of the Family: 2
4. No. of children studing:2
5. No. of Helping Hands at home:2
(1 part-time,1 full time)
6. No. of Telephone lines (Land lines):1
7. No. of Mobile phones:4
8. No. of Vehicals:2
9. (1 four wheeler;1 two wheeler)
10. House owned
11. Designation of earning members : Grandfather: Manager in ICICI Bank
Father : Executive director in Mehta & Mehta
Company
FOR THE MONTH OF JANUARY
CATEGORY MONTHLY AMOUNT

TOTAL INCOME 75000

TAXES 15000
ACTUAL INCOME 60000
HOUSE MAINTAINANCE 4000
GROCERRY+FRUITS+VEGE 12000
TABLES
MILK 5000
ELECTRICITY+WATER 2500
CONVEYANCE 1000
 CATEGORY MONTHLY AMOUNT
CLOTHING 2500
EDUCATION+CLASSES 5000
ENTERTAINMENT+PRESETATIO 2000
N

AUTOMOBILES 2000
TELEPHONE+MOBILE 2000
HOME HELPERS 1500
REPAIRS 500
CABLE+INTRNET CONNECTION 500

TRAVELLING 2000
LAUNDARY 500
SHOPPING 2500
STATIONERY 500
MEDICAL 5000
GRAND TOTAL 51000
SAVINGS 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/family-
monthly-budget-planner-TC001023342.aspx
 http://office.microsoft.com/en-us/templates/family-
monthly-budget-planner-TC001023342.aspx