The assignment is to create a personal annual budget divided by months. The budget should include a listing of revenues and expenditures, along with projected amounts for each by month. Then, write a review of the budget of about 3 pages. The two documents should be submitted via Webcourses.
Use the Template attached as an example and guide.
Make a list of revenue sources you expect to receive between January 1, 2022 and December 31, 2022. Change the Revenue 1, Revenue 2, Revenue 3, etc. titles to reflect your personal list of revenues. Insert rows as necessary. You may include an additional row for opening balance if you plan to utilize your past savings to pay for 2022 expenses.
Complete the previous step for 2022 expenditures. Change the Expenditure 1, Expenditure 2, Expenditure 3, etc. titles to reflect your personal list of expenditures. Insert rows as necessary.
If you get stuck brainstorming revenues and expenditures, look to past bank statements or other financial records for ideas.
Once the lists are complete, review each row to determine how much you expect to receive or spend and what months you expect that to occur.
Sum the total of each row from January to December in the Line Item Total column to get a holistic look at the annual value for each revenue and expenditure stream.
Create subtotals for each month in the Revenue Subtotal and Expenditure Subtotal rows by summing up all of the revenues and expenditures for the month, respectively. Then, in the Balance row, subtract the expenditures subtotal from revenues subtotal in January to get the first balance amount. For the other months, add the previous month’s balance amount to the current month’s revenues and then subtract the current month’s expenditures to calculate the current month’s balance amount. (e.g., January balance + February revenues – February expenditures = February balance)
The balance amount at the end of December is your final surplus (if it is positive) or deficit (if it is negative). Do not create a year-end balance in the subtotal column next to December–since you are keeping a running balance, your December balance is also your year-end balance. Consider revising your budget to eliminate a deficit.
Please see attachment Word Document for reference in the Budget Template.
THE PERSONAL BUDGET TEMPLATE MUST BE USED AS UPLOADED.
