The Components Of A Great Monthly Budget Calculator

There are literally many monthly budget calculators out there on the Web and they each offer a different structure and different set of categories. This has led to people getting confused as to what a good monthly budget calculator should have. In order to address this issue, this article has been written to list the most important and essential components of a great monthly budget calculator.

First of all, at the top of the list is your income which can be divided into 2 categories: paycheck and other after-tax income. These are the only categories in the income part of the calculator. The rest is occupied by various categories of expenses.

The first category of expenses is housing expenses which include the following subcategories: Property (mortgage/rent/property tax), Utilities (Gas, Water, Electricity), Phone, TV and Internet.

Following this, you have food expenses which also includes the food you buy when you eat out. Another category of expenses is the entertainment category which involves going out to the movies, concerts and plays.

One last major category of expenses is the insurance category where you will need to pay car, home, health, disability and dental insurance. This is a category that is often left out by people doing budgets.

You should include a category called savings/emergency funds. This is also an expense in the sense that the money is going out to a savings account or emergency fund. You may never know when you’ll need the money so it is wise to put money aside from time to time.

With a great monthly budget calculator anyone can plan their finances and get on their way to achieving their goals and objectives in life.