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The Life Budget equation computes the different components of your monthly expense budget based on averages from society. Many New Year resolutions include managing money better. The most important thing about having money is knowing what to do with it. It is important to spend money wisely. It is the goal of this calculator to help people budget their income based on reasonable portions (percentages) of one's income allocated to the main areas of life.
Note: This equation was a 5th place winner in the vCalc Coding for Community (2015) contest.
| Life Expense categories | |||
| Housing | Utilities | Food | |
| Transportation | Healthcare | Clothing | |
| Savings / Insurances | Entertainment | Debt Service |
Instructions
- Enter your monthly income
- Chose the category (e.g. food)
The calculator will then provide an estimate of how much you should be spending on that category of life (e.g. food) based on your monthly income and on percentages depicted in the graphic.
Budget Percentages
Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include:
- To control resources
- To communicate plans to various responsibility center managers.
- To motivate managers to strive to achieve budget goals.
- To evaluate the performance of managers
- To provide visibility into the company's performance
- For accountability
