MATH'S PROJECT- HOME BUDGET

-Vidhi chokhani Xth Roll no-05

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