Planning for a Personal Financial Budget

Question Description

Write a 3 page budget plan explaining why planning for a financial future and making sure that goals are achievable and have a specific time frame are important. Also explain in detail the item listed below:

  • how you would spend less than you earn
  • how you would save for a specific major purchase like a home or car.
  • How you would build a rainy day fund
  • How you would pay off debt
  • Include in the report a budget table with fictitious numbers but include sources of income and categorize expenses by:
  • Fixed
  • Variable
  • Needs
  • Wants
  • Include in the report how you would Compare income and expenses, how you would adjust/reduce expenses if necessary, and monitor your report to ensure that you were on track to hit your goals.

Use APA format and list all references cited

Final Answer




Personal Budget Plan
Student’s name



In an ideal economy, the higher the income, the higher the consumption and the savings.
However, there exist some economic constraints to spending that make consumers not fully
achieve the desired utility, due to limited income compared to the desired consumption.
Therefore, consumers experience an opportunity cost on some goods where they can only
consumer a bundle of other goods which they consider essential to them (Garman & Forgue,
2011). It therefore necessitates for a personal budget plan which balances the disposable incomes
and the total expenditures, especially on consumption. A personal budget plan thus shows how
an individual will be spending a certain amount of money over a given time period in future
(Garman & Forgue, 2011). A budget allows individuals to determine in advance whether, they
have enough income to facilitate expenditure on some goods, prioritize essential goods and
services required for consumption and avoid overspending during the specified period.
Personal budgeting is important in aspects such as; it enables one to save for the future,
since they include savings in the budget, which thus covers for any emergencies in future. It also
helps individual rectify their daily consumption trends for sustainability in future. Budgeting also
helps consumers n...

CristinaP (13078)
Purdue University

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Thanks as always for the good work!

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