Budget Creation Tool
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This document provides instructions for using a budget creation software tool. It explains how to enter income sources like fixed income, other income, and fixed expenditures like rent, food, utilities. It also covers entering non-essential expenses like clothes, dining out, entertainment. The software then creates a budget document showing monthly income versus expenditures to identify areas for savings.
Budget Creation Tool
- 1. BUDGET CREATION TOOL Volume 1 Instruction Manual © Richard Butler 2012 1
- 2. Legal Notice Legal Notice:- This digital eBook is for informational purposes only. While every attempt has been made to verify the information provided in this report, neither the author, publisher nor the marketer assume any responsibility for errors or omissions. Any slights of people or organizations are unintentional and the development of this eBook is bona fide. The producer and marketer have no intention whatsoever to convey any idea affecting the reputation of any person or business enterprise. The trademarks, screen-shots, website links, products and services mentioned in this eBook are copyrighted by their respective owners. This eBook has been distributed with the understanding that we are not engaged in rendering technical, legal, medical, accounting or other professional advice. We do not give any kind of guarantee about the accuracy of information provided. In no event will the author and/or marketer be liable for any direct, indirect, incidental, consequential or other loss or damage arising out of the use of the information in this document by any person, regardless of whether or not informed of the possibility of damages in advance. 2
- 3. About the author Richard Butler is a trained life and business coach and a qualified practitioner of Neuro Linguistic Programming. Originally from Dublin, Ireland he had the opportunity to move to Barcelona in Catalonia Spain. Richard currently works as a trainer for a leading recruitment company but also provides coaching for private candidates. His expertise as a trainer and coach has led him to have international clients and he has spoken at conferences both in Ireland, England and the USA. 3
- 4. The Software Your coaching power pack comes with two software titles – The Budget Creator and the Life Vision Creator. The Budget Creator is explained below: Launching the Budget Creator software When you first launch the software you will be asked to enter in your name. Make sure you enter in your full name. Next you are asked to enter in the currency symbol that they are using, for example pound, or euro. Fixed Income The next question deals with the fixed income you earn each month. It is important to realise this is the guaranteed income you will receive every month. If you are a sales person and earn a commission we need to enter their base income here. This is what you will always get each and every month and is expressed as monthly value rather than weekly (if you get paid weekly then you must multiply the figure by 4) Other income Next comes the other income section. What other income do you bring in? This could be commissions, extra work you do etc. Again express this as a monthly figure. You may think you have no extra income but perhaps you get paid $40 a week to chair a meeting at a local club. Remember everything counts. 4
- 5. Fixed expenditure The subsequent questions talk about your fixed outgoings. This is the money you have going out of your account every month. For example rent, electricity, loans you must pay off. This is not outgoings like eating out; topping up your mobile phone (if you have a mobile phone contract that is a fixed expenditure you pay every moth). Food is the next fixed expenditure. Although you can vary the amount you spend we know for sure you need food. This food should only include your grocery shopping. Having included the amount of food you eat, you must look at the amount you spend on electricity and then on gas and water. If you don’t spend anything on gas, for example you can enter a zero. Remember every figure is a monthly rather a weekly figure Next you will need to total up the amount you spend on credit card repayments you need to enter in the total of all credit cards. Most of us have a loan or two, so again you should total up all of the loans you have and then enter the final amount per month should be entered here. Any other fixed expenses you have should be entered in. For example what about insurance policies, medical expenses etc. This total includes anything that you spend money on each and every month. Non essential expenses The next section starts to deal with is non essential expenses, these expense are expense that could be cut if necessary. You don’t need to spend this money. This will be an important part of your post budget considerations. 5
- 6. First up you have is clothes expenses. Not always necessary to spend lots on it but on average how much would you spend a month. If you don’t know think about in a year, and then divide by two! The next two questions talk about weekly coffee and lunch expenses. These are your take out coffees, snacks, lunches etc. There’s probably one day a week or month that you have lunch out, this might be for example a sandwich from the local deli. After this we have going out expenses. Here you should include any expense they incur on average over the week or weekend, specifically eating out in the evening, going out for a drink at the weekend etc. I would include the following, although your list might be longer: • Dinners during the week • Entry into clubs or concerts or show • Dinners or lunches at the weekend • Cinema tickets You should total these up and get an average of how much you spend per month. The next question is an open question where you can list out any other non essential expenses you may have. This is anything that you don’t need, it is not essential. Again think long and hard about this. You will be amazed at the aha moments you will have. This is the final question and after this your income and expenditure document will be created. It may be a shock but this is good as it will make you think. From the document you can clearly see how much money you are making and how much you are spending. 6
- 7. Now you can/must decide where you can make savings. 7