Is this a good expenditure budget?

R

rite

Skilled
Hi

Although I don't need to do this atm, I was just wondering and thinking how would I allot our family money if I had my own family and was earning at a similar level as we currently do.

Of course, I am too young atm and will need to do something like this only years from now.

But, is the budget given below something people would like to follow?

I am talking of net family income after taxes, that is post-tax income combined of all family members.

HOME/RENT(Including water/electricity/renovation etc)

15%

This could be zero too in my case if I don't buy a house and just live in the house which I inherit from my parents. But in case I need to buy one, I would keep it to max 15%.

TRANSPORT(All cars minus old car selling costs, including petrol, maintenance etc)

15%

FOOD(Grocery etc, and other house expenses)

10-15%, MAX 15%

TRAVEL(Vacations etc)

5%

APPAREL&ACCESSORIES

5%

OUTINGS(Restaurants etc)

5%

GADGETS(TV, computer, mobile phone etc)

5%

MISC(Services like barber, health, driver, some thing here and there)

5-10%

ADDITIONAL EXPENSES

<5%

TOTAL

70-80%

BALANCE = SAVING = 20-30% (+15% in case you don't need to buy a house)

Savings are for education, marriage, pension and misc.

Does this sound good for other people too? What changes do people usually make????
 
homes are run by women. all you have to do is give them your monthly salary. they manage the rest. even your budget. :|
 
Looking at your calculations I would suggest you to consider renouncing the world and living in the Jungles... It is far easier than budgeting!! Lolzzz :p
 
nehaladsul said:
Looking at your calculations I would suggest you to consider renouncing the world and living in the Jungles... It is far easier than budgeting!! :p
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Why, did I miss out some expense(s)???
 
rite said:
Why, did I miss out some expense(s)???
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rite said:
I don't get it. Which expense has been missed???
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^^ No bro... You are good... My bad... :stup1: Carry On... I am sure our fellow helpful TE Members will help you out!!

Just one small question: These threads you make... Do you not consider discussing these topics with someone else like friends, relatives or elders in first person?? What makes you start a thread on TE for issues that can (or should) be dealt with on a personal level?? :S
 
rite said:
I don't have many friends nor many people who I can talk to. Just one or two good friends, that is about it.
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^^ I had thought so... and the reason being??

You needn't disclose it if it is too personal... Sorry for asking. :ashamed:

I am sure that people are going to make fun of you on this thread (like the past many threads)... And I know that I have done the same all these past days... :ashamed:

But I would like to say SORRY for what I have done in the past... Hope you do well in life and in whatever you do... :)
 
Says who???
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@rite, this is a fact of life. men cant run homes as efficiently as women do. so men marry women.

can you tell me what will you do if run over budget in a month due to unforeseen expenses coming up suddenly? stop eating food the next month or not pay your bills?
 
@rite: U cannot apply a budget for running a home... It is a very dynamic affair... One month the AC in ur house ran 24 hrs for all days so u electric bill definately shoots up and crosses the 5% budget u had alloted... There is a wedding in ur house and with ur habit of buying quality/brands ur apparel budget will become almost 95% of ur monthly income.... THEN WHAT?

Like people said there are some things which are better handled by females/wives... So let it go...

Dont try to grow up early man... Enjoy being young and blow ur dad's money all the way cause when u become independant (U start running a house)... All the budgets u make will go straight out of the window....
 
Dude, my AC is on for at least 16-20 hours a day. And other ACs too are on whenever people are in their respective rooms. The only difference in bill is like 5k for a lean month and 10k for a heavy month.

I assume 10k every month when I make these figures. I am not talking of a few grands here or there, they always happen and hence 10-15% of the income is kept flexible in the budget mentioned.

For a wedding, you need to use savings, you can't spend 10s of lacs from a given month's budget!

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Also, even atm, most of my enjoyment comes from my company money and I need to budget that.

Of my personal income, what I try to do is like this:

1-2 lacs PA Apparel

1 lac approx Gadgets, comp etc

1-2 lacs Food misc etc

Total 4-6 lacs PA maxed out from my company earnings.

And the rest for savings, and soon 10k or so pm for a car emi too. and another 15k pm for mutual funds sip. And the rest of course goes to either mutual funds to stays in my cash accounts.
 
I don't think this thread should be derailed, rite has used % figures so this might make an interesting thread.

Personally, I try to cut down on transport costs as much as I can. I don't use the car, except when absolutely necessary. I bike to work and most other places or take the bus (office provides us with a bus pass). I look for a place to live close to where my office is. So that is a huge saving for me.

Also, when kids enter the picture, I guess all calculations are thrown out of the window.

Edit: Dammit, he has now brought numbers into the picture. Thread officially derailed.
 
I did 15% for transportation because I assume a 4 member household, each with a personal car, and all at least entry/low level sedans and daily travelling decent distances through petrol.
 
Rite, actually you cannot allocate % figures like this. It will just collapse.

Your buckets were:

HOME/RENT: All ready you are not sure of this. Inherited or bought. If you buy, probably you will take a bank loan. You would need to bake that in.

TRANSPORT: Transport to where...? You could be going to office (any where in NCR). Visiting friends/going to the hospital/going to Nehru Place. It will fluctuate immensely. Now do not tell me, once you cross a % threshold you will stop transport.

FOOD: Again this is dynamic in nature. Depends on eating habits, which can change. Eating out, guests, festival season.

TRAVEL: This you can lock down.

APPAREL&ACCESSORIES: Again dynamic in nature. But to a limit can be controlled.

OUTINGS: Can control this.

GADGETS: Most of the months you can control this. But at times you might pick up a 4-door refrigerator, new cell. Next month you will not.

MISC + ADDITIONAL EXPENSES: To hard to peg down a %. Someone falls sick. You have to renew a lease. Car insurance. Accidents. Any thing under the sun can cause an expenditure.

What does it boil down too. You cannot predict it right now. Unless they hand off the cheque book to you, and you start to run it. Pay all the people your self. Manage the bills. Basically the cash flows out of your hands. Be it plastic or real. After probably 3-4 months you can start to get ball-park figures. :)

But good to see you are planning well in the future. Money planned is money saved.
 
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