Читать книгу Horse Economics - Catherine E O'Brien - Страница 23

Develop a Budget

Creating an annual realistic budget is hard, especially if you have horses. A budget is easily done on paper or with spreadsheet software (though I find that software budget calculators, or those found online, don’t offer enough categories, nor include horse-related items). First, use the following five steps to find your average total monthly expenditures—the figure upon which you will base your budget (fig. 2.2).

1 Sit down with your checkbook and credit card statements.

2 List your expenditures from the previous twelve months by category. Some categories that may apply to you:Automobile maintenance (service, new tires, oil changes)Automobile insuranceAutomobile loansFederal, state, and local taxes not withheldMortgage paymentsHome equity loansGroceries/household itemsGasElectricityFuel/wood for heatWater and utilitiesTelephoneCell phoneClothing/dry cleaningPersonal care (haircuts, etc.)Recreation and entertainmentVacationSpending money and lunchesSchool and sports activities for childrenFarrierVeterinarian expenses for all animalsMedications for domestic animals (flea and tick control, heartworm preventive, etc.)Wormer, fly spray, ointmentsBoarding feesHayGrain and suppliesBeddingHorse shows and related attireRiding instructionTraining clinicsPasture management (lime, fertilizer, seed)Credit card paymentsUninsured medical and dental expenses, co-pays and prescriptionsHealth insuranceLife insuranceDisability insuranceHorse owner’s liability insuranceRetirement fundsInvestment fundsChristmas gifts, birthday gifts

3 Then, go through your checkbook and credit card statements and list the relevant monthly expenditures made over the last year in each category. (Items that do not need to be paid for within the next year should not be included. However, if there are purchases that you know you will be making later in the year, such as new tires, include the appropriate amount in your yearly automobile maintenance figure, or list it as a separate item.) When you are done, each category should have 12 numbers, an amount for each month.

4 In the first category, add the 12 numbers, and then divide by 12. The resulting figure is your average monthly expenditure for that category. Repeat this step for the remaining categories.

5 Finally, add all the average monthly expenditures together. The resulting figure is your total average monthly expenditure.