The purposes of budgeting are for resource allocation, planning, coordination, control and motivation. It is also an important tool for decision making, monitoring business performance and forecasting income and expenditure. With proper budgeting, limited resources are managed efficiently.
Creating a budget is the first step to living frugally, according to HowStuffWorks. A budget establishes long-term goals and saves money in the process. For example, cooking at home instead of eating out saves money, and choosing creative recipes helps in resisting the temptation to eat fast food.
The two main components of any budget are income and expenses. Other components of a budget include overhead, production, totals and projections. Income is the total revenue that comes in, while expenses are the total amounts of money spent.
A home's HVAC system and appliances are the most common causes of high electricity bills. Most modern appliances and gadgets draw electricity when turned off, which causes them to consume a lot of electricity over a long period.
According to Apartments.com, the amount of income spent on base rent should be no more than 30 percent of earnings after taxes. Base rent does not include any utilities that must be paid in addition to rent.
A budget provides an easy way for a teenager to track income and expenses and to establish financial goals. When the budget is finished, follow it regularly and carefully for best results.
Free items for low income families can be found online through free recycling sites, as well as in the "free" listings in the local paper. There are also multiple charities that provide household items, clothing and toys for families in need of assistance.
In the U.S. in 2013, the average moderate food bill for a 19-to-50-year-old man was $294.80 for a month and $251.70 for a woman of the same age. On average, a child uses $260.30 per month on a moderate plan by the time he or she is 9 to 11 years old.
The average food budget for a single person is about $302 per month, according to LowerYourSpending.com. Based on data from the U.S. Department of Agriculture, LowerYourSpending.com notes that grocery spending within USDA guidelines ranges from about $198 to about $450 depending on the person's age and other factors.
Living on a budget can be really difficult depending on your lifestyle; however, living on a budget can improve quality of life. By creating a budget, setting goals, getting out of debt and controlling spending, one can learn to effectively save and spend money, advises About.com.
According to CNN Money, as of 2013, the average amount of money parents spend raising a single child is $241,080. This average is based on 18 years of parenting and does not include the cost of college, which varies widely.
The purpose of a budget is to ensure that a household's or business's expenses do not amount to more than the income. A budget can also help individuals properly allocate money to different categories to ensure that all of the basic needs of the family or company are met.
Economic well-being is a person's or family's standard of living based primarily on how well they are doing financially. Economic well-being is measured by the government to determine how their citizens are faring, as it is integral in a person's overall well-being.
A utility bill is a document sent to a legal address requesting payment for a public service, such as telephone, electric, gas, sewer or water. Utilities are usually services that are necessary to operate a home or business. In general, utility bills are sent once per month.
The Consumer Federation of America recommends saving money by avoiding impulse buys; limiting unnecessary conveniences, such as entertainment memberships; and researching lower rates on essential purchases, including auto insurance, prescriptions, utilities and phone services. Tracking monthly spending habits helps consumers develop a cost-saving budget and identify repetitive purchases that quickly drain bank accounts.
According to Fox Business, 33 percent of a person's monthly income should be devoted to housing. This value includes rent, utilities, insurance and other home-related expenses.
To keep a petty cash book, first determine the minimum daily amount of cash your company needs to cover small expenses, such as services, stationeries, parking fees, food and beverages. Each petty cash disbursement must be accompanied by a petty cash voucher and purchase receipt, and recorded in the petty cash book with the date, amount and description of the expense, explains About.com.
Ideally, a mom can afford to stay home if all household expenses are adequately covered by the sole working partner. Families can use a budget calculator to figure out how much money is needed to maintain current living standards after the loss of income from one partner.
Entrepreneurship.org notes that monitoring a budget involves performing a regular comparison of projected financial costs and gains against actual performance numbers. Discovering the variances between budgeted amounts and actual financial performance allows management to determine how well a company is meeting goals. Monitoring the budget also functions as a powerful cost management tool for businesses.
In general, Costco does not accept manufacturer's coupons, according to its membership privileges and conditions page. Only coupons that are distributed by Costco are accepted.
The national average for a gas bill is between $40 and $150 per month, depending on the season, according to Apartment Ratings in 2011. Utility bills vary from city to city based on the source of the natural resources and the rate that utility companies choose to charge.