The Family Budget

In my last two posts, I included some Tips on Preparing the Family Budget.

I hope I was able to impart the message that budgeting is not just a matter
of zeroes and ones.

Here you will find a Family Budget Sample. It is meant to serve as a mere
guide. I am not a guru nor do I have a PhD in business. As I have mentioned,
there are many systems out there. I cannot emphasize enough the need for
you to research and research until you find a system that works for you.
Always, always, always, use your better judgment when making financial
decisions.

The Zero-based Budget

One system used for budgeting is known as the “Zero-based Budget”.
It uses the basic principle that: income – expenses = zero.

“Income” refers to all money coming in.
“Expenses” refers to all money going out.

No, it does not mean that you will spend it all.

What it does mean is that every peso, dollar, euro, yen, etc that comes
in is allocated and accounted for.

Income (Php net)
Salary - 15,000
Bonus
Gift from abroad (in Php)
Total - 15,000

Expenses (Php, net)
Tithe - 1,500
Savings - 1,500
Savings – Retirement Plan - 1,500
Amortization – House - 2,000
Utilities - 1,000
Food - 2,500
Transportation - 2,500
Sports and Vitamins - 1,000
Clothing - 1,000
Emergency Fund - 500
Total - 15,000

Although this is a monthly budget, H and I have a spreadsheet for the
entire year. It has a monthly budget vs monthly actual set-up. I prefer
to update the file weekly. We TRY to discuss the status every 15th and
31st of the month. Again, we too are a work in progress.