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Prepare a monthly budget for Ms Masters that would account for the needs of each person in the family.

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Introduction

´╗┐The Task Ms Masters earns a salary of J$40,000 each month after all statutory deductions have been made. She is a single parent with two children ages 2 years and 14 years who both live with her. She gets J$5,000 per month for child support. She pays J$7,000 per month for rental, uses both electricity and water and has a loan with a furniture store for which she pays J$516 per year. She does not have a landline telephone. 1. Prepare a monthly budget for Ms Masters that would account for the needs of each person in the family. If an Item is not in the budget, give a reasonable explanation of how that need would be met. ________________ Pre- Preparation What is a Budget? A (home) budget is a financial plan of one?s income and expenses, usually expressed over a period of one month. After adding up all your sources of income, you have established the total amount of money you have to spend. Next total all of your individual monthly expenses. ...read more.

Middle

Ms Master?s Budget Expenditure Week 1 Week 2 Week 3 Week 4 Total Rent $1,750 $1,750 $1,750 $1,750 $7,000 Hire Purchase Loan $516 $516 $516 $516 $2,064 Landline Telephone N/A N/A N/A N/A $0 Son aged 2 yrs $1,250 $1,250 $1,250 $1,250 $5,000 Son aged 14 yrs $2,250 $2,250 $2,500 $2,250 $9,000 Transportation $500 $500 $500 $500 $2,000 Savings $1,500 $1,500 $1,500 $1,500 $6,000 Food $2,000 $2,000 $2,000 $2,000 $8,000 Medical Insurance $1,000 $1,000 $1,000 $1,000 $4,000 Household Supplies $400 $400 $400 $400 $1,600 Miscellaneous $84 $84 $84 $84 $336 How the money is spent on the 2 year old Items Week 1 Week 2 Week 3 Week 4 Pampers $500 $500 $500 $500 Baby food $600 $600 $600 $600 Miscellaneous $150 $150 $150 $150 TOTAL $1,250 $1,250 $1,250 $1,250 How the money was spent on the 14 year old Items Week 1 Week 2 Week 3 Week 4 Lunch Money $1,500 $1,500 $1,500 $1,500 Transportation $500 $500 $500 $500 Stationeries $100 $100 $100 $100 Piggy Bank Savings $100 $100 $100 $100 Personal business $50 $50 $50 $50 TOTAL $2,250 $2,250 $2,250 $2,250 ________________ Areas that were excluded from this Budget and possible reasons as to why: 1. ...read more.

Conclusion

I have learnt that not only budgeting for oneself is important but also for individuals for which you are responsible. This will assure effective budgeting. Based on previous and presently gained knowledge, I implore individuals to engage in budgeting as it very wise thing to do. Since the fundamental problem of sacristy is always arising, individuals should ensure that they use their resources to cover their needs at an opportunity cost of their wants and luxuries. As mentioned earlier, when budgeting one should outline his/her area(s) of income and highlight his/her expenses. However, it is wise to take out a portion for savings so that you can always have money to assist you in emergencies. Effective budgeting is evident to have helped individuals to rise above ?financial paralysis? over the years as well as helped individuals to manage their income?s liquidity. A budget has no specific group of individuals for which it is successful, once done correctly it will be of good use. This is similar to the statement that implies ?if it has worked for others, it will work for you?. ...read more.

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