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The personal financial planner 3.2 is very helpful especially with the end of the year quickly
approaching, this would be helpful for anyone to get back on the right track in 2020. I have
taken a finance/economics class in high school as well as one at my previous college. It was
a requirement to create a personal budget report and that's about as far as I took the budget
reports. I didn't use them outside of school after I got the grade. I however am at a stage in
my life that I do need this personal budget report because I have fallen a little bit behind. I
am currently moving due to these financial burdens, and I need to put this in my day -to-day
life and see where exactly all my money is going. I did save a copy of the personal budget
excel sheet, and plan to implement this into my new daily routines. I have developed in my
current temporary career path this past year and am in a brand-new tax bracket. I am now
paying for healthcare coverage for my daughter and I (pre-tax). I thought I was going to get
back a decent tax return but after reading this chapter I have learned I will have to do my
taxes differently this year, and probably with a tax professional to declare certain expenses.
The process of creating and using a personal budget has been very beneficial and useful for
me. Even though I knew for quite some time that I needed to use a personal budget to
manage my expenses, I recently started using it. I have been able to keep a track of my
expenses and income which have helped me to identify variances. I basically use a
spreadsheet to capture all my spending and receipts. Whenever I spend money, I ensure to
input it in the spreadsheet file. Similarly, I also make sure to keep a record of the money that
I receive. I use the spreadsheet with a declining balance. This week, I learned the technique
to forecast income and variables. Forecasting or making predictions is of primary
importance as it simplifies the management of financial activities. The process basically
helped me to get an insight into the expenses that I would have to incur in the month. The
foresight basically helped me to plan the use of available financial resources in a well-
planned and organized manner. The tax withholding can have a major implication on the
budget or financial goals of an individual. In fact, the proper know-how on how to claim tax
can also help to save a substantial amount of money. I have been using a personal budget for
the past few months or so and I would say my experience has been successful and positive.
I have noticed a significant financial increase and a lot of cushions for unexpected
circumstances. U also use a budgeting app called Digit and it is a great contribution to my
budget and finances as well. I write my expenses to be higher than they actually are and I
use the left over amount to put into a safe for rainy days or miscellaneous use. This week I
have learned so many new things that will be a great asset to my future budgeting and
savings plan. The most favourable would be the lesson on bank accounts. I have always had
an issue with being able to keep track of over drafts and being able to keep my account from
over drafting or overspending which is why I switched my primary account to a prepaid
account. After this week I can see myself opening another account and I feel more confident
that I will be able to keep it balanced. In my experience, tax withholding can affect your
budget if you do not have any taxes cut through the year but instead your take home amount
is more. I filed exempt for about 10 months out of the year which caused me to end up
owing taxes instead of receiving a refund. That pushed my times goals back an entire year
since I was going to use my refund to help contribute to the completion of my timed goal.
Tax withholding affects your budget in the way that, if you receive a refund; you have extra
you can put into savings for future goals, and if you owe taxes, it can mess up the estimate
you have for the next couple budgets; unless you have some savings that could possibly help
you. My experience with saving my bank account, I added a savings account. The use of the
savings account is to help with an emergency fund for my household. The funds are
automatically deducted from my check before deposited into my checking account. I don’t
have a percentage set, instead I have been using a specified amount. Every two weeks I put
away $200.00. I have built up a pretty large sum in funds. The budget I use while putting
aside the $200.00, is writing out my monthly budget expected amount per pay check. I write
down the bills due for the month including the amount to help keep track of what I have left.
My current method in budgeting I use the Cleo app to track my expenses and help me
understand any changes in my budget. For example, at one point I noticed my family spent a
lot of money on eating out so instead I cut back on spending money on lunches and dinner.
I begin more cooking at home and saw a drastic change in my money left over. I’ve learned
more information regarding overdraft protection and to track the processing time of
transactions. I’ve also learned that banks process payments largest to smallest which with
smaller payments they cause overdraft. So, I am knowledgeable of not being so spend happy
with my cards.I don’t believe tax withholdings affect budget or expenses much , if you
include those in the budget for expected funds. The experience I had using a personal budget
is when I was like 25 years old. I moved out on my own and I had to pay bills. I made a list
of what needed to be paid and when it needed to be paid. Yes I have tracked expenses to
identify variances. I would use my bank statements, receipts, and notebook of what I spent.
The strategies I have learned this is how to file taxes, what forms to use for taxes, learned
what mistakes not to take when it comes to budgeting. Just a thought to me I don't think that
tax withholding will affect my budget or financial goal because I have based my saving on
what I bring home after all of my bills are paid. My first experience with using a personal
budget was when I was in my last year of high school. I was using the 50/30/20 budget plan.
Fifty percent of my money would be for needs, thirty percent for wants, and twenty percent
for savings. Since I was getting ready to enter college, I switched the thirty and twenty
percent to help me save more. That had worked for a while but my spending habits had
changed. Now, I have listed out all my recurring bills, allotted myself a certain amount of
money and an emergency fund. After adding all the money together, I subtract that amount
from an estimate of what I make monthly and I'll keep 20% for wants and the rest will go
into my savings account. I believe that doing my budget this way also allows me to keep
track of my spending. I have learned a lot about taxes this week, but at the same time it felt
like a lot of information. I definitely plan on going back and reading over it all again until I
gain a better understanding. My experience with creating and using a personal budget was I
tried a budget app before where I put in my monthly and weekly pay and made a list of each
item bill, savings, emergency, entertainment and etc. I added how much i spend on each
category and the app automatically edited the expenses i should spend on each item based of
my income. It was definitely helpful because I was able to see how much extra cash I had
left over to add to fun activities to do with the kids or add to my savings. Yes, I tracked
expenses using either a app and my phone reminders to let me know when bills are do and
how much, also I use a app that connects to my bank accounts and it tracks my daily
spending. I learned this week that tax withholding can affect your budget or financial goal if
you make an accident on your taxes you can be audited and you want to make sure you're
properly filing your taxes, so that you won't have any delays. I plan to do a little more
studying to get a better understanding of taxes. My experience with creating and using a
personal budget has been up, and down. I usually start off great, but end up over budget, and
not balancing anything. I normally end up going into my savings for some of my expenses
which I don't like doing. With the new information and resources, I'm ready to begin a new
and improved budget.I usually try to start off the first of the year with a budget, I write down
my income, expected raises, and a weekly budget. I include emergencies within my budget,
but somehow, after a few months of doing a great job, I always end up not saving as much
as I initially anticipated. I end up with some savings, but not the amount that I expected. I
don't think that my tax withholding will have a big affect on my financial goals as long as I
include it within my budget. During this lesson, I've not only learned to budget better, but
I've learned a lot of information regarding banks, credit unions, savings, and interest rates.
This lesson, the previous lesson, and the activities were very helpful for my current finances,
and future endeavours. In the past my experiences with creating and using a personal budget
has not been very good at all, but after reviewing this weeks lessons and the information
they have provided, my experience with creating and using a personal budget has improved
dramatically. The method that I used to track expenses to identify variances was to create a
monthly spending plan and tracking my actual spending to see how much it differs from my
plan. I have learned about budgets, variances, rule 72 and stop payments. I learned a lot
about money this week that I know I will be using for a very long time and that will help me
next month with budgeting. I thought it was very interesting to know that the United States
has a progressive tax system and most states have a regressive tax system. Tax withholding's
can affect your budget or financial goals by changing the marginal tax rate you pay and
placing you in a tax bracket you shouldn't be in if you filed the right deductions and
exemptions. I have always known I needed to create and use a personal budget, but I have
only recently started to use one. I always managed to stay afloat not using one, but now that
I have created a budget plan, I have seen a huge difference. I have so much more saved and
more to use for everyday things. Before I would be pay check to pay check. Knowing where
your money is going and how much is coming in is important. I have a spread sheet that has
a declining balance, I input everything I spend money on and all incoming cash flow. I have
my fixed bills and I am now learning just how many variable expenses I have. I learned a lot
about forecasting my income and variables. Being able to look ahead at what I have coming
and accurately forecasting my budget has made my life so much easier. Learning what to
claim on your taxes can save you a lot of money. I recently changed my filling status; I now
have more money each paycheck and still get a tax refund.
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