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    ALP Advanced 9 2023

    Uploaded by

    Omar Sanchez
    The document discusses a family budget and the key elements that make up a family budget including income, savings, expenses, fixed expenses, and variable expenses. It provides examples of typical expenses families may have and recommended budget percentages for different expense categories.

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    ALP Advanced 9 2023

    Uploaded by

    Omar Sanchez
    138 views2 pages
    The document discusses a family budget and the key elements that make up a family budget including income, savings, expenses, fixed expenses, and variable expenses. It provides examples of typical expenses families may have and recommended budget percentages for different expense categories.

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    The document discusses a family budget and the key elements that make up a family budget including income, savings, expenses, fixed expenses, and variable expenses. It provides examples of typical expenses families may have and recommended budget percentages for different expense categories.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    138 views2 pages

    ALP Advanced 9 2023

    Uploaded by

    Omar Sanchez
    The document discusses a family budget and the key elements that make up a family budget including income, savings, expenses, fixed expenses, and variable expenses. It provides examples of typical expenses families may have and recommended budget percentages for different expense categories.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 2

    On this occasion I explain about the family budget.

    In this case we assume that my family is made up of 4 members.


    First, we need to know what is a family is budget?
    A budget is a plan you write down to decide how you will spend your
    money each month.
    In fact, A budget gives a plan to help a household use money, as well as
    pay things that are important to that household.
    My wife and I make a budget of income, expenses, and savings every year
    to plan our expenses and have better savings and investments.
    According to the theory, a family budget is made up of the following
    elements: income, savings, and expenses.
    Each of the three elements plays a part in ensuring that a household
    operates and uses their income responsibly.
    Expenses are composed of 2 components: fixed expenses and variable
    expenses.

    What's the Difference Between Fixed and Variable Expenses?


    Fixed expenses cost the same amount each month. These bills cannot
    easily be changed and are usually paid on a regular basis, such as weekly,
    monthly, quarterly or from year to year.
    It's much easier to budget for fixed expenses than it is to budget for a
    variable expense.
    Typical fees household fixed expenses include:
    Mortgage or rent payments.
    Car payments
    Real estate taxes
    Insurance premiums

    Variable expenses represent those daily spending decisions such as eating


    at restaurants, buying clothes, grabbing coffee at Starbucks, and playing
    soccer with your buddies.
    Typical fees expenses include:
    Groceries
    Dining out
    Gas
    Entertainment
    Hobbies
    Personal care
    Food: 10 – 20%
    groceries / personal care / baby needs
    Clothing: 3 – 5%
    for all members of the family
    Transportation: 15 – 20%
    bus / taxi / fuel / insurance / maintenance / parking
    Housing: 35%
    mortgage / taxes / rent
    Utilities: 5%
    phone / cell phone / gas / cable / internet
    Medical: 3%
    health care premiums / specialists / over the counter
    Debt Payments: 5 – 15%
    Many people find that their budget is quite tight because their monthly
    debt payments are closer to 25% of their net income but you should follow
    some personal finance tips:
    First you must pay the most important bill.
    Second you need to pay the overdue bill that precede payment of bill that
    are not late yet. Ok So far?
    Third Set up your bank account so that a certain sum is automatically
    move to a saving account each month. Are you following me?
    For another hand you always must keep some money available for
    emergency.
    By the way, I’m not altogether sure but you should be capable of living on
    your saving for at least2 or 3 months if you lose your job.

    Savings: 5 – 10%
    Plan to save money for expenses that don’t occur every month, as well as
    for your future. Then you’ll have a little extra available when you need it.
    Personal & Discretionary: 5 – 10%
    entertainment / recreation / tobacco/alcohol / eating out / gaming / hair
    cuts / hobbies

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