Monthly Budget Calculator (tool guide)
Managing your expenses monthly guarantees you will have a clear statement at the end of every year or even a month.
However, sometimes it would be hard to calculate your expenses, and then analyzing them is another matter.
But if we told you we had developed a tool to do all these tasks for you, you would have a decent analysis.
If you are a student and want to manage your money more, this tool will come in handy; let's go and see how it works.
This is the Monthly Budget Calculator tool.
Fields that you have to fill in the monthly budget calculator
In this section, we intend to tell you about the area that you have to fill to get the right results on the Monthly Budget Calculator:
Monthly expenses
This section of the tool includes:
- Food
- Health
- Housing
- Household
- Transportation
- Clothing
- Children
- Personal
- Miscellaneous
These are the fields, and as the name of every area suggests, you have to put in the number that you spend on each category, and then you shall move on to the next section.
Pro tip: always put a tad more to be safe at the end of the year, so there are no misfortunes.
Annual expenses
This section is dedicated to the yearly spending amount, and you must calculate the current year's expenses.
This section includes:
- Tuition
- Homeowners/rents insurance
- Car
- Taxes
- Travel
- Other
These fields indicate the amount you spend on every item in a year, such as a college tuition or taxes that you pay at the end of the year.
And the others section is the one you have to use to put the costs that you had along the year that does not take place in any of the fields.
Monthly savings
This section is dedicated to your savings because every month, you will put aside some amount to be safe, which is called savings.
This section includes:
- Emergency fund
- Investment
- Retirement
Like the first section, the names suggest what you should input in the fields; remember that all of these amounts are optional.
This means that if you do not have retirement savings or an investment, it is ok, and you can leave this section blank.
Monthly income
This section instead balances the chart because, in this section, the toil will calculate your income rather than expenses.
This category includes:
- Monthly pay
- Monthly others
- Annual gifts
- Annual tax return
These fields indicate the amount of money you will earn in a month and some in a year, and the calculation will be done by the tool, so there is nothing to worry about.
After you have decently filled out the form, you have to tap on the yellow diagram, and then the tool will process all of your expenses to give you a precise result.
Now we shall see what the results of the Monthly Budget Calculator will indicate. Let's go.
Results of the monthly budget calculator
In this section, we will you about the results that you should be expecting:
Total monthly expenses
This section will show the total money you would spend in a month, giving you a clear image of the spending.
Total annual expenses/12
This section shows all the money you would spend in a year, calculating everything you pay until the last dollar.
Total monthly savings
This section shows that you have this amount of savings for the emergencies that may occur; because this field is essential, make sure that you put aside some savings.
Total monthly income
This section tells you the amount of your income, which shows approximately how much money you will have at the end of the year before expenses.
Under/over budget
This section takes all the information from the previous areas and gives a final result on whether your expenses are over or under budget.
This field can help you to make a decent decision from that moment about your expanses.
And at the end, you will see a diagram showing the exact numbers but in the form of a chart so you would better understand the expenses you have.
Now let’s see the formula that this tool works with, and then you are ready to use the tool:
Over/under budget = ((monthly income * 12) + (monthly savings * 12)) – ((monthly expenses * 12) + (annual expenses))
Now let’s cite an example:
Imagine that the fields are filled with one dollar, meaning that every area has a value of $1. You will have:
- Total Monthly Expenses: $9
- Complete Annual Expenses/12: $1
- Total Monthly Savings: $3
- Total Monthly Income: $4
Based on the formula, the tool will tell you that you are $-14 over budget.
This is how the tool works, but there is no worry because it will conduct all of the operations, and you will get your result for the Monthly Budget Calculator in a single moment.
Good luck!
Frequently Asked Questions (FAQs)
- Monthly expenses
- Annual expenses
- Monthly savings
- Monthly income
- Total monthly expenses
- Total annual expenses/12
- Total monthly savings
- Total monthly income
- Under/over budget
Monthly budgets are typical due to the prevalence of recurrent bills that must be paid every month, such as rent, utilities, credit card payments, and other loan installments.
The monthly Budget Calculator analyzes the different aspects of a personal budget and draws attention to the specific aspects that could use some work.
- Monthly expenses
- Annual expenses
- Monthly savings
- Monthly income
