Budget Designer

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Budget Designer Powered By Docstoc
					Adviser Assistant Budget Designer
  If you have not created a budget before you may want to know how to allocate your monthly
  income. Or even if you have created a budget previously this feature should be able to assist you
  with your budgeting needs. The budget designer allows you to select any variable to create a
  budget from scratch. You may either enter your current net monthly income to get a budget snap
  shot. Or you may select an expenditure that you are currently paying for or wish to have in the near
  future, (current rent, desired mortgage, car payment, savings contribution etc.). The purpose of
  this illustration is to highlight an efficient allocation of your monthly income; as well, to pin point
  your ability to afford the life you want to have with minimal consumer debt risk with your current

Which variable would you like to build a budget on?        Monthly Net Income
                        Mortgage Car Payment
             Monthly Net Income Payment                    Lifestyle (All entertainment expenses)
                                               Total Savings Contribution
What is your monthly net income?                                         $                -
Budget Snapshot
      Monthly Income                                                      $                 -
      On-Going Monthly Expenses
      Bare Necessities
              Housing                                                 $                  -              33%
              Transportation                                                             -              12%
              Basic Groceries and Clothing                                               -               5%
      Note: As long as the percentages above do not exceed 50% you can be flexible with these
      categories within the Bare Necessities
      Wants, Desires, and Vices (a.k.a Life Expenses)
              Within this category anything deemed not required for
              everyday survival falls in this category                    $                 -           30%
                Monthly contribution allocated to long term savings,
                debt payments and any other major milestone in life
                (tuition, mortgage downpayment savings, etc)              $                 -           20%


A monthly budget that is allocated efficiently would minimize the risk of increasing consumer debt. Bare
Necessities should be mostly fixed expenses (except groceries) as is Savings transactions (pre-authorized
deposit accounts). Therefore, your only variable expenditures are your 'Wants' expenditures; however, if
you had to track every cent you spent on entertainment then it will become a chore that eventually gets
ignored. The definition of a great budget is one that you do not have to think about. If your monthly 'Life
Expenses' allocation totalled $600, then you should know that is all you should be allowed to spend each
month. A good way to stay within budget is to withdraw even amounts in cash for your Wants, Desires,
and Vices, that way you will not be tempted to use a credit card. If you make it to the end of the month
before getting to the end of the cash then you have done well, but if you run out before the end of the
month then it is a matter of waiting for the next month before you can spend again.

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Description: First time creating a budget? Or do you have a budget and feel it is not working out for you? The Adviser Assistant Budget Designer generates a snap shot budget from a selection of several variables (mortgage payment, monthly net income, lifestyle desired, etc.). The purpose of this spreadsheet tool is to conclude if you can generate enough of an income to afford a budget you desire or introduce the concept that your budget may be inefficiently allocated.