By keeping track of savings and expenses monthly, it is one of the most important factors that can help individuals manage their money well, as the budget compares both expenses and inputs, thus helping to save.
Some Models Developed for Individuals
Balanced Formula
Its idea is to spend 50% of the total monthly income value on basic expenses, 30% spending requirements and desires, and 20% savings in spending. It is the easiest and simplest budget you can continue with, and in this form the basic needs are:
Home rent, clothes, and health insurance are indispensable. As for the requirements, they are picnic, entertainment, dining in restaurants, vacation and vacation expenses, and finally savings, to pay off debts or savings to achieve a specific goal.
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Cash Budget
The best for many people, which is known as the envelope system, during which the entire monthly income is monitored and monitored, monthly fixed expenses are withdrawn such as house rent, debt payments, installments, services, insurance, mortgage and savings, and putting those amounts aside, where the value of each of the above is put in an envelope It’s own. The amount required for each item is placed in an envelope of its own, which prevents the disbursement of more money than required. It also requires leaving the credit card at home to avoid withdrawing the money.
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Zero Budget Form
For example, if your monthly income is 4000 pounds, then the sum of the items in the budget is equal to it.
That is, the total value is equal to zero, and this budget is not limited to the necessary hypocrisy, but includes investment and savings. The best budget for those wishing to control their money completely and disciplined, this budget enables the fundraising in the best way and restricting the spending of each pound previously planned, but dealing with this budget may be a waste of time due to the amount of planning required for him model 60% and the percentage is used and not specific amounts
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Such as:
- Food
- Clothes
- Car payments
- Insurance
- Unnecessary expenses
As for 40%, it is divided into four parts:
- · 10% for retirement
- 10% for long-term savings (emergency fund)
- 10% to be used for vacation and unnecessary expenses
- 10% easy to manage money, such as entertainment
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