Personal Budget Sample

Creating a personal budget sample is fairly easy. Think in terms of total cash received, less necessities, to arrive at disposable income. Your discretionary income or lack thereof, is the key element of the calculation. For example, personal budget sample income includes: 1) salary and business profits, 2) investment income, and 3) alimony or child support received. Items from the personal budget sample expenses must include: mortgage payments, lease and utilities, 2) car payments and transportation costs, 3) other debt payments, 4) health care, and 5) food, clothing and other necessities.

The formula from the personal budget sample

The actual budget you calculate will undoubtedly include extraordinary items unique to your personal situation. The personal budget sample above is simply that, a sample of the most common items in a very conservative budget. This personal budget sample does not include luxury items, discretionary spending, or other items that may be eliminated without compromising basic survival. This is the standard used by bankruptcy courts to determine "excess income" that must be paid to debtors in Chapter 13 cases.

A realistic measurement

Quality of life matters. Child care, efficient transportation, modest entertainment, regular exercise, quality food and continuing education are considered essential by most people to maintain a minimum standard of living. Your personal budget sample should also include the items you consider essential. Finally, when deducting expenses from income in your personal budget sample, the remaining cash flow at the end of the month represents your maximum potential investment payment.