STEP 1 : YOUR INCOME
Calculate the household’s total income. Add all salaries after deductions, and other income such as rent to obtain a total income that is available for spending.
Hint:
Transform your hobby or interest into an alternative source of income.
STEP 2 : FIXED PAYMENTS YOU MUST MAKE
Each month there are certain fixed payments that you need to make, i.e. rent/bond, car payments, insurance, school fees, loan payments & other accounts etc. Calculate this amount.
Hint:
Keep detailed monthly records of all expenses to assist you with your budget.
STEP 3 : VARIABLE PAYMENTS YOU MUST MAKE
Variable monthly payments also need to be made, but with the exception that you have some control in limiting expenses, i.e. groceries, transport, water/lights account, telephone, repairs, medical bill, bank charges etc. Calculate this amount.
Hint:
If these payments are not made, you stand to lose the items purchased or end up in court.
STEP 4 : DISCRETIONARY PAYMENTS
Discretionary payments can also be made monthly and are normally for luxury and unnecessary items like books, holidays, gifts, magazines/newspapers, pets & sports. Calculate your monthly discretionary payments.
Hint:
Implement procedures to control the use of these items and minimize these expenses in future.
STEP 5 : YOUR PERSONAL BUDGET
Use the budget table on the next two pages to indicate your income and planned expenditure – see if you have enough money to meet all the obligations.
Hint:
The easiest way to save money is not to buy unnecessary items at all.
EXAMPLE OF BUDGET TABLE
Income Description | Self | Spouse | Total |
---|---|---|---|
Salary (After tax & deductions) | R | R | R |
Commission | R | R | R |
Over Time | R | R | R |
Bonus | R | R | R |
Investment income | R | R | R |
Other (e.g. rent) | R | R | R |
Total Monthly Income | R |
Expense Description | Self | Spouse | Total |
---|---|---|---|
Housing | |||
Bond repayments | R | R | R |
Rent | R | R | R |
Electricity | R | R | R |
Rates and Taxes | R | R | R |
Water | R | R | R |
Insurance | R | R | R |
Repairs/maintenance | R | R | R |
Other | R | R | R |
Transport | |||
Fares (Bus/Taxi) | R | R | R |
Car repayments | R | R | R |
Car insurance | R | R | R |
Car maintenance | R | R | R |
Fuel Costs | R | R | R |
Other | R | R | R |
Medical | |||
Medical Aid premiums | R | R | R |
Medical and dental (not covered by medical aids) | R | R | R |
Other | R | R | R |
Family & household | |||
Groceries | R | R | R |
Telephone / Cellphone | R | R | R |
Clothing | R | R | R |
Child care | R | R | R |
Education | R | R | R |
Security | R | R | R |
Household | R | R | R |
Insurance | R | R | R |
Domestic Help | R | R | R |
Laundry / drycleaning | R | R | R |
Pet Food / Vet | R | R | R |
Other | R | R | R |
Entertainment | |||
TV License / DSTV | R | R | R |
Entertainment | R | R | R |
Sport / recreation | R | R | R |
Hobbies | R | R | R |
Restaurants | R | R | R |
Gifts | R | R | R |
Holidays | R | R | R |
Other | R | R | R |
Savings & Investments | |||
Emergency Fund | R | R | R |
Retirement annuity contributions | R | R | R |
Unit trusts | R | R | R |
Life policies | R | R | R |
Endowments | R | R | R |
Savings | R | R | R |
Other | R | R | R |
Other Costs (Accounts / HP ect) | R | R | R |
Donations / Charity | R | R | R |
Credit card payments | R | R | R |
Income tax provision | R | R | R |
Clothing Accounts | R | R | R |
Bank Charges | R | R | R |
Haircuts / manicures | R | R | R |
Miscellaneous | R | R | R |
Other debt payments | R | R | R |
Other | R | R | R |
Other | R | R | R |
Other | R | R | R |
Total Expenses | R | ||
Nett Monthly Balance (income less expences) | R |