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Final Assignment

The document presents a personal budget analysis over six months, detailing income sources, fixed and variable expenses, and overall financial health. Key insights include a total income of $28,500 and total expenses of $19,870, with recommendations for optimizing the budget and improving savings. The analysis highlights spending patterns, areas for potential savings, and the importance of increasing the emergency fund coverage.

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jazib9733
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4 views3 pages

Final Assignment

The document presents a personal budget analysis over six months, detailing income sources, fixed and variable expenses, and overall financial health. Key insights include a total income of $28,500 and total expenses of $19,870, with recommendations for optimizing the budget and improving savings. The analysis highlights spending patterns, areas for potential savings, and the importance of increasing the emergency fund coverage.

Uploaded by

jazib9733
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Personal Budget Analysis Assignment

INCOME SOURCE
Category January February March April May June Total Average
Primary Job Salary $ 4,200.00 $ 4,200.00 $ 4,200.00 $ 4,200.00 $ 4,200.00 $ 4,200.00 $ 25,200.00 4200.00
Side Gig Income $ 200.00 $ 500.00 $ 300.00 $ 400.00 $ 200.00 $ 500.00 $ 2,100.00 350.00
Investment Returns $ 100.00 $ 300.00 $ 200.00 $ 100.00 $ 300.00 $ 200.00 $ 1,200.00 200.00
Total $ 4,500.00 $ 5,000.00 $ 4,700.00 $ 4,700.00 $ 4,700.00 $ 4,900.00 $ 28,500.00 4750.00

FIXED EXPENSES

Category January February March April May June Total Average


Rent/Housing $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 $ 1,400.00 1400.00
Car Payment $ 350.00 $ 350.00 $ 350.00 $ 350.00 $ 350.00 $ 350.00 $ 2,100.00 350.00
Insurance (Health & Car) $ 300.00 $ 300.00 $ 300.00 $ 300.00 $ 300.00 $ 300.00 $ 1,800.00 300.00
Phone & Internet $ 120.00 $ 120.00 $ 120.00 $ 120.00 $ 120.00 $ 120.00 $ 720.00 120.00
Student Loan Payment $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 400.00 $ 2,400.00 400.00
Total $ 2,570.00 $ 2,570.00 $ 2,570.00 $ 2,570.00 $ 2,570.00 $ 2,570.00 $ 8,420.00 2570.00

VARIABLE EXPENSES

Category January February March April May June Total Average


Groceries $ 500.00 $ 450.00 $ 600.00 $ 400.00 $ 500.00 $ 450.00 $ 2,900.00 483.33
Utilities $ 150.00 $ 120.00 $ 200.00 $ 150.00 $ 100.00 $ 180.00 $ 900.00 150.00
Transportation/Gas $ 200.00 $ 250.00 $ 200.00 $ 250.00 $ 200.00 $ 150.00 $ 1,250.00 208.33
Entertainment $ 300.00 $ 250.00 $ 400.00 $ 350.00 $ 300.00 $ 400.00 $ 2,000.00 333.33
Shopping $ 200.00 $ 300.00 $ 500.00 $ 300.00 $ 400.00 $ 350.00 $ 2,050.00 341.67
Dining Out $ 250.00 $ 400.00 $ 300.00 $ 200.00 $ 250.00 $ 300.00 $ 1,700.00 283.33
Healthcare $ 100.00 $ 150.00 $ 100.00 $ 50.00 $ 150.00 $ 100.00 $ 650.00 108.33
Total $ 1,700.00 $ 1,920.00 $ 2,300.00 $ 1,700.00 $ 1,900.00 $ 1,930.00 $ 11,450.00 1908.33

INCOME VS EXPENSE

Category January February March April May June


Income $ 4,500.00 $ 5,000.00 $ 6,000.00 $ 4,700.00 $ 4,700.00 $ 5,500.00
Expense $ 1,000.00 $ 4,000.00 $ 4,870.00 $ 4,000.00 $ 2,000.00 $ 4,500.00

Calculations OF DATA

Category Values
Average Monthly expense $ 1,636.67
Total Debt Payments $ 2,400.00
Total Monthly Expenses $ 8,540.00
Monthly Saving $ 480.00
Saving Rate 10.10526316
Fixed Expenses % $ 54.11
Variable Expenses % 40.18
Debt-To-Income Ratio 50.52631579
Discreptionary $ 5,750.00
Essential Ratio $ 14,120.00
Total $ 19,870.00
CALCULATIONS

CONDITIONAL STATEMENT

Category Actual Spending Budgeted Amount Status Percentage Analysis


Rent/Housing $ 8,400.00 $ 8,400.00 Near Budget 100 Good control over spending
Car Payment $ 2,100.00 $ 2,200.00 Under Budget 95.45454545 Good control over spending! Consider reallocating surplus to debt reduction.
Insurance (Health & Car)$ 1,800.00 $ 1,800.00 Near Budget 100 Good control over spending
Phone & Internet $ 720.00 $ 650.00 Over Budget 110.7692308 Spending exceeded the budget. Review this category to identify cost-saving.
Student Loan Payment $ 2,400.00 $ 2,000.00 Over Budget 120 Spending exceeded the budget. Review this category to identify cost-saving.
Groceries $ 2,900.00 $ 2,900.00 Near Budget 100 Good control over spending
Utilities $ 900.00 $ 900.00 Near Budget 100 Good control over spending
Transportation/Gas $ 1,250.00 $ 1,500.00 Under Budget 83.33333333 Good control over spending! Consider reallocating surplus to debt reduction.
Entertainment $ 2,000.00 $ 1,870.00 Over Budget 106.9518717 Spending exceeded the budget. Review this category to identify cost-saving.
Shopping $ 2,050.00 $ 2,100.00 Under Budget 97.61904762 Good control over spending! Consider reallocating surplus to debt reduction.
Dining Out $ 1,700.00 $ 1,700.00 Near Budget 100 Good control over spending
Healthcare $ 650.00 $ 800.00 Under Budget 81.25 Good control over spending! Consider reallocating surplus to debt reduction.

BY USING FORMULA

Category Type VLOOKUP COUNT IF INDEX MATCH Nested Formula


Primary Job Salary Income Income 3 Income 3
Side Gig Income Income Income 3 Income 3
Investment Returns Income Income 3 Income 3
Rent/Housing Fixed Expense Fixed Expense 5 Fixed Expense 5
Car Payment Fixed Expense Fixed Expense 5 Fixed Expense 5
Insurance (Health & Car) Fixed Expense Fixed Expense 5 Fixed Expense 5
Phone & Internet Fixed Expense Fixed Expense 5 Fixed Expense 5
Student Loan Payment Fixed Expense Fixed Expense 5 Fixed Expense 5
Groceries Variable Expense Variable Expense 7 Variable Expense 7
Utilities Variable Expense Variable Expense 7 Variable Expense 7
Transportation/Gas Variable Expense Variable Expense 7 Variable Expense 7
Entertainment Variable Expense Variable Expense 7 Variable Expense 7
Shopping Variable Expense Variable Expense 7 Variable Expense 7
Dining Out Variable Expense Variable Expense 7 Variable Expense 7
Healthcare Variable Expense Variable Expense 7 Variable Expense 7

FINDING METRIC VALUES

Metric Formula Explanation Value


Total Income Sum of income categories $ 28,500.00
Total Expenses Sum of expense categories $ 19,870.00
Savings Rate (Income - Expenses) / Income 0.302807018
% Spent by Category (Expense/Income) * 100 69.71929825
Discretionary : EssentialDiscretionary / Essential 0.407223796
Emerg Fund Coverage Funds / Monthly Expenses 3.054983595
Debt-to-Income Ratio (Debt Payments / Income) * 100 0.084210526
ANALYSIS & INSIGHTS
Section Details
Spending Patterns "Fixed costs like Rent and Car Payments dominate income, while variable expenses like Entertainment and Dining often exceed budgets."
Areas for Savings "Cutting Entertainment and Dining Out by $300 and reducing Shopping by $150 could save money. Track discretionary expenses more closely."
Budget Optimization "Reallocate savings to the Emergency Fund or debt repayment. Consider refinancing loans to lower payments and cut utility & transportation costs to boost financial health."
Financial Health Indicator A 15.96% DTI ratio shows manageable debt, but the Emerg Fund covers only 2-3 months. Aim for 6 months' coverage & increase the Savings Rate through budget adjustments

PIE CHART
Student Loan Payment
15%

Phone & Internet


5%

Insurance (Health & Car)


12% Rent/Housing
54%

Car Payment
14%

LINE CHART

Chart Title
$7,000.00

$6,000.00

$5,000.00

$4,000.00

$3,000.00

$2,000.00

$1,000.00

$-
January February March April May June

BAR CHART
Chart Title
$600.00

$500.00

$400.00

$300.00

$200.00

$100.00

$-
Car Payment Insurance (Health & Phone & Internet Student Loan Payment Utilities Transportation/Gas Entertainment Shopping Dining Out Healthcare
Car)

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