What would be your house hold budget for a month?

Everyone is earning hard for their livelihood. Nearly 50% of our life time is being used towards earning money only whereas about 30% goes for sleeping and rest for other activities. So our hard earned money should be applied smartly so that we can live happily the present and not to worry for the future. As we can able to maintain a good amount in saving. Before going into budget we can look for what is income and how we can earn:

No.	Source of Income	Nature of Income
1	Trading and Business	Profit
2	Profession	Fees and Commission
3	Working	Wages and Salary
4	Money lending	Interest
5	Assets	Rental and Lease income
6	Speculation	Profit from Share and securities and income from other speculation activities
7	Others	Gifts and prizes

From the first 5 ways we can assume a fixed portion of income we can earn every month for sure to meet our day to day routine. So the question arises here what would be ideal budget for a family like India?

We have to meet our family expenses like food, water, education, rent, electricity, cloth etc; the list seems endless…

The ideal budget we are discussing here is indicative only and for family consists of 2 adults and 1 kid. If you lead a life matching with ideal budget then you won’t end up with a sudden shock of where to go to meet your financial needs.

Here is the ideal budget for an income of r20000 / month:

Particular of	% on	Amount /
Expenses	Expense	Month
Housing Expenses	20	4000
Food	33	6600
Utilities	5	1000
Cloths	6	1200
Insurance and Medical	3	600
Education	5	1000
Transportation	5	1000
Entertainment	6	1200
Repayment of debt / Saving	10	2000
Miscellaneous and Taxes	5	1000
Donation	2	400
TOTAL	100	20000

If you won anything from a lottery or prize or received a gift, you invest it or arrange for an additional income using that money.

In case your income tend to increase the amount spent on food will go down. Suppose your income is Rs.100000/P.M then you would not spend 33% on food but may be 10% - 15% based on your attitude and behavior  So, in this case you can allocate the balance either on saving or investing. You can acquire movable asset like cars but I suggest you to buy additional or more luxurious car with additional source of income.

This budget is blend of everything from housing, medical to donation. According to your needs, attitude and life style you can change a bit. But I suggest you to give room for everything.

Enjoy the life happily and peacefully.