Читать книгу Horse Economics - Catherine E O'Brien - Страница 24

Grain & Supplies
Jan	$155
Feb	140
Mar	120
Apr	105
May	95
June	90
July	90
Aug	110
Sept	130
Oct	135
Nov	135
Dec	140
Total	$1,445
Avg. monthly expenditure:	$120

Groceries & Household Items
Jan	$400
Feb	600
Mar	350
Apr	375
May	450
June	400
July	500
Aug	600
Sept	500
Oct	550
Nov	450
Dec	400
Total	$5,575
Avg. monthly expenditure:	$465

Total avg. monthly expenditure (for these two categories): $120 + $465 = $585

2.2

Next, determine your average monthly income, which may include take-home pay, dividends, and interest. Don’t include bonuses or overtime in this figure unless they are guaranteed.

The household depicted here owns a farm and two horses. This month, it is about $350 over budget. It needs to increase the amount budgeted toward utilities, and decrease household and grocery expenditures.

Compare the expenditure and monthly income figures. If expenditures are greater than income, either reduce expenses or increase income. If income is greater than expenditures, then increase savings, retirement plans, and investments.

One way to track expenses in a specific category is to print or copy twelve monthly budget sheets (one for each month), and at the end of each month, record the actual amounts spent. Comparing your budgeted figures to the actual numbers helps you gauge how realistic and attainable your budget is. There is room for improvement in any category where expenditures exceed budgeted amounts. (See fig. 2.3 for an example of a monthly budget worksheet.)

Managing Cash Flow

Unfortunately, coming up with a workable budget does not help you manage your cash flow. For this, it’s practical to draw up a cash requirement worksheet (figs. 2.4 A—C). With this worksheet, you can create a separate, special bill-paying account (either checking or savings) to put aside cash for items that become due quarterly, semi-annually, or annually and ensure you have enough money to cover those larger bills. Think of your special bill-paying account as an escrow^♦ account for your future obligations.

The cash requirement worksheet is a simple tool that can be designed with spreadsheet software, or simply drawn on paper. The amount saved monthly toward payment of a bill is entered and then crossed out when the bill is paid. The amount in your special bill-paying account should equal the total sum of the columns on this worksheet.

The cash requirement worksheet is just one element in your overall cash-management system. A simple operating cash flow statement helps you see the “big picture” where your money is concerned. See fig. 2.5 for a cash flow statement showing the months of January, February, and March for this household. (Blank monthly budget and cash flow requirement worksheets are available in the Appendix for you to use.) The special bill-paying account outlined in figs. 2.4 A—C is listed as a “cash account” on the statement of cash flow.