MATH'S PROJECT- HOME BUDGET

Advaith Praveen Shetty

Xth
Roll.no - 02
ACKNOWLEDGEMENT
 I would like to thank my Math's Sir , Manu , 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.
 FAMILY OUTLINE
1. Family’s Name : Shetty’s
2. No. of Family members:4
3. No. of Earning Members of the Family: 1
4. No. of children studing:2
5. No. of Helping Hands at home:1
(1 full time)
6. No. of Telephone lines (Land lines):1
7. No. of Mobile phones:3
8. No. of Vehicles:2
9. (1 four wheeler;1 two wheeler)
10. House owned
11. Designation of earning members :
Father : Sr.Mannager in
Akshayapatra Foundation ,by ISKCON Temples
FOR THE MONTH OF JANUARY
CATEGORY MONTHLY AMOUNT

ACTUAL INCOME 60000

HOUSE MAINTAINANCE 4000
GROCERRY+FRUITS+ VEGETABLES 12000
MILK 5000
ELECTRICITY+WATER 2500
CONVEYANCE 1000
 CATEGORY MONTHLY AMOUNT
CLOTHING 2500
EDUCATION+CLASSES 5000
ENTERTAINMENT+PRESETATION 2000

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 50500
SAVINGS 9500
BAR GRAPH COMPARING ALL THE
EXPENSES
12000

10000

8000

6000

4000

2000

0
S S S S S
NCE LE IL
K
TE
R
NCE ING SE IO
N E
LE BIL PER AIR TIO LIN
N G RY ING ERY CA
L
A B M A A H S T I DA PP N I
IN ETA +W VEY LO +CL SET
T A A OB MO EL RE
P
EC VEL UN HO IO ED
A Y C M + H N A A S T M
NT VEG CI
T ON N E TO ONE ME CO
N
TR
L ST
A
AI + R I C TIO +PR AU H O T
M S P H
SE UIT CT U CA ENT LE NE
U E E R
FR EL ED INM T T
HO Y+ A +IN
R T E
ER ER ABL
C T C
O EN
GR
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 Shetty’s Family is Rs.900000.the tax
to be paid is the 10% of the total income , that is
Rs.90000.
 The actual income is (Total Income - Taxes ). The
actual income is Rs.810000.
 The savings after all expenditure is Rs. 9000.

 The yearly savings for Shetty’s family is Rs.114000.

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