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Budget Creation Tool


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Instruction manual for Richard But

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Budget Creation Tool

  1. 1. BUDGET CREATION TOOL Volume 1 Instruction Manual © Richard Butler 2012 1
  2. 2. Legal NoticeLegal Notice:- This digital eBook is for informational purposes only.While every attempt has been made to verify the informationprovided in this report, neither the author, publisher nor the marketerassume any responsibility for errors or omissions. Any slights ofpeople or organizations are unintentional and the development ofthis eBook is bona fide. The producer and marketer have no intentionwhatsoever to convey any idea affecting the reputation of any personor business enterprise. The trademarks, screen-shots, website links,products and services mentioned in this eBook are copyrighted bytheir respective owners. This eBook has been distributed with theunderstanding that we are not engaged in rendering technical, legal,medical, accounting or other professional advice. We do not give anykind of guarantee about the accuracy of information provided. In noevent will the author and/or marketer be liable for any direct,indirect, incidental, consequential or other loss or damage arisingout of the use of the information in this document by any person,regardless of whether or not informed of the possibility of damages inadvance. 2
  3. 3. About the authorRichard Butler is a trained life and business coach and a qualifiedpractitioner of Neuro Linguistic Programming. Originally from Dublin,Ireland he had the opportunity to move to Barcelona in CataloniaSpain.Richard currently works as a trainer for a leading recruitmentcompany but also provides coaching for private candidates.His expertise as a trainer and coach has led him to have internationalclients and he has spoken at conferences both in Ireland, Englandand the USA. 3
  4. 4. The SoftwareYour coaching power pack comes with two software titles – TheBudget Creator and the Life Vision Creator. The Budget Creator isexplained below:Launching the Budget Creator softwareWhen you first launch the software you will be asked to enter in yourname. Make sure you enter in your full name.Next you are asked to enter in the currency symbol that they areusing, for example pound, or euro.Fixed IncomeThe next question deals with the fixed income you earn each month.It is important to realise this is the guaranteed income you willreceive every month. If you are a sales person and earn a commissionwe need to enter their base income here. This is what you will alwaysget each and every month and is expressed as monthly value ratherthan weekly (if you get paid weekly then you must multiply the figureby 4)Other incomeNext comes the other income section. What other income do youbring in? This could be commissions, extra work you do etc. Againexpress this as a monthly figure. You may think you have no extraincome but perhaps you get paid $40 a week to chair a meeting at alocal club. Remember everything counts. 4
  5. 5. Fixed expenditureThe subsequent questions talk about your fixed outgoings. This is themoney you have going out of your account every month. For examplerent, electricity, loans you must pay off. This is not outgoings likeeating out; topping up your mobile phone (if you have a mobilephone contract that is a fixed expenditure you pay every moth).Food is the next fixed expenditure. Although you can vary the amountyou spend we know for sure you need food. This food should onlyinclude your grocery shopping.Having included the amount of food you eat, you must look at theamount you spend on electricity and then on gas and water. If youdon’t spend anything on gas, for example you can enter a zero.Remember every figure is a monthly rather a weekly figureNext you will need to total up the amount you spend on credit cardrepayments you need to enter in the total of all credit cards.Most of us have a loan or two, so again you should total up all of theloans you have and then enter the final amount per month should beentered here.Any other fixed expenses you have should be entered in. For examplewhat about insurance policies, medical expenses etc. This totalincludes anything that you spend money on each and every month.Non essential expensesThe next section starts to deal with is non essential expenses, theseexpense are expense that could be cut if necessary. You don’t needto spend this money. This will be an important part of your postbudget considerations. 5
  6. 6. First up you have is clothes expenses. Not always necessary to spendlots on it but on average how much would you spend a month. If youdon’t know think about in a year, and then divide by two!The next two questions talk about weekly coffee and lunch expenses.These are your take out coffees, snacks, lunches etc. There’sprobably one day a week or month that you have lunch out, thismight be for example a sandwich from the local deli.After this we have going out expenses. Here you should include anyexpense they incur on average over the week or weekend, specificallyeating out in the evening, going out for a drink at the weekend etc. Iwould include the following, although your list might be longer: • Dinners during the week • Entry into clubs or concerts or show • Dinners or lunches at the weekend • Cinema ticketsYou should total these up and get an average of how much you spendper month.The next question is an open question where you can list out anyother non essential expenses you may have. This is anything that youdon’t need, it is not essential. Again think long and hard about this.You will be amazed at the aha moments you will have.This is the final question and after this your income and expendituredocument will be created. It may be a shock but this is good as itwill make you think.From the document you can clearly see how much money you aremaking and how much you are spending. 6
  7. 7. Now you can/must decide where you can make savings. 7