Personal Budget

Financial Management

It’s key to check in with our personal budget on a weekly basis so that we can adjust our spending throughout the month. A personal or household budget is an itemized summary of expected income and expenses for a defined period of time, most frequently one month.

A budget will show us how much money we expect to bring in against all of our expenditures from the required expenses like house payments, rent and discretionary spending like entertainment.

Ultimately, the end result of the personal budget will show where the money is coming from, how much is there, and where it is all going each month.

Steps for effective personal budget:

• Record all of the sources of income.
• Create a list of monthly expenses. 
• Break expenses into fixed and variable.
• Total your monthly income and monthly expenses.
• Make adjustments to expenses.

It is important to review the budget on a regular basis to make sure to stay on track. With a personal budget, a person can begin to prioritize his spending and better manage his money and financial future. Otherwise, we risk overspending and racking up credit card debt, which can be a dangerous thing for our personal finances.

Aiyan Thiruvalluvar says

அளவறிந்து வாழாதான் வாழ்க்கை உளபோல

இல்லாகித் தோன்றாக் கெடும்.  (479)

निज धन की सीमा समझ, यदि न किया निर्वाह ।
जीवन समृद्ध भासता, हो जायगा तबाह ॥ (४७९)

Explanation by Scholars:

The prosperity of him who lives without knowing the measure (of his property), will perish, even while it seems to continue.

பொருளின் அளவு அறிந்து வாழாதவனுடைய வாழ்க்கை, பல வளமும் 
இருப்பது போல் தோன்றி, இல்லாமல் மறைந்து கெட்டு விடும்.