Personal Budget Calculator

Personal Budget Planning

This calculator helps you create a monthly budget by analyzing your income, expenses, and savings goals. A well-planned budget is the foundation of financial stability and helps you achieve your financial objectives.

Why Budgeting is Important

• Gives you control over your money
• Helps you focus on financial goals
• Prevents overspending and debt accumulation
• Prepares you for emergencies
• Reduces financial stress

50/30/20 Budget Rule

A popular budgeting method suggests dividing your after-tax income into three categories:

• 50% Needs: Essential expenses like housing, utilities, groceries, transportation
• 30% Wants: Non-essential spending like entertainment, dining out, hobbies
• 20% Savings: Emergency fund, retirement, debt repayment, investments

Tips for Effective Budgeting

• Track all your expenses for at least one month
• Differentiate between needs and wants
• Set realistic savings goals
• Review and adjust your budget regularly
• Automate savings and bill payments
• Build an emergency fund (3-6 months of expenses)

Common Budget Categories