A budget allows the government to regulate the imposition of taxes in various sectors. Investment and expenditure are some of the most prominent factors contributing to the growth of a nation’s economy.

Government expenses include spending on current goods and services, which economists call government consumption; government investment expenditures such as infrastructure investment or research expenditure; and transfer payments like unemployment or retirement benefits.

A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows.

Budgeting for the national government involves four (4) distinct processes or phases : budget preparation, budget authorization, budget execution and accountability. While distinctly separate, these processes overlap in the implementation during a budget year.

A government budget is a financial document comprising revenue and expenses over a year. Depending on these estimates, budgets are classified into three categories-balanced budget, surplus budget and deficit budget.

The budget cycle consists of four phases: (1) prepara- tion and submission, (2) approval, (3) execution, and (4) audit and evaluation. The preparation and submission phase is the most difficult to describe because it has been subjected to the most reform efforts.

5 Steps to Successful Budgeting

• Step 1: Automate essential, recurring living expenses.
• Step 2: Automate savings.
• Step 3: Establish a debt reduction plan.
• Step 4: Commit to a spending plan.
• Step 5: Account for irregular expenses.

Separate your monthly bills into three categories: needs, wants and savings/debt repayment….Needs

• Mortgage/rent.
• Homeowners or renters insurance.
• Property tax (if not already included in the mortgage payment).
• Auto insurance.
• Health insurance.
• Out-of-pocket medical costs.
• Life insurance.
• Electricity and natural gas.

Non-Discretionary Expenses means those Operating Expenses, the payment and amount of which are not within the discretion of Owner or Manager, including without limitation utility charges, salaries and benefits of Property employees, scheduled payments of principal and interest on indebtedness encumbering the Property.

The term discretionary expense refers to a cost that a business or household can get by without, if necessary. Meals at restaurants and entertainment costs are examples of discretionary expenses.

Discretionary spending – 30%: Thirty percent of your budget is for anything you want but wouldn’t say you need. It would cover all of your non-necessities, such as entertainment and travel.

Discretionary spending refers to non-essential items, such as recreation and entertainment, that consumers purchase when they have enough income left over after paying the necessary expenses such as the mortgage and utilities.

30 percent

The 50/30/20 rule budget is a simple way to budget that doesn’t involve detailed budgeting categories. Instead, you spend 50% of your after-tax pay on needs, 30% on wants, and 20% on savings or paying off debt.

How much should you spend on rent? Try the 30% rule. One popular rule of thumb is the 30% rule, which says to spend around 30% of your gross income on rent. So if you earn $2,800 per month before taxes, you should spend about $840 per month on rent.

The first one is the 30% rule. That’s where you spend no more than 30% of your income on rent. So, if you’re earning $1,000 a week, you’d want to spend around $300 on rent.

One suggestion, provided by Metropolitan Life Insurance Company, is to spend no more than 25 percent of your monthly gross income on your rent. For example, if your annual salary is $30,000 per year, or $2,500 per month, you shouldn’t plan to spend more than $625 per month on rent.

In fact, the average minimum wage worker in the U.S. would need to work almost 97 hours per week to afford a fair market rate two-bedroom and 79 hours per week to afford a one-bedroom, NLIHC calculates. That’s well over two full-time jobs just to be able to afford a two-bedroom rental.

According to the US Census Bureau, the average personal income for 2019 was $35,977. Therefore, if you make $31,200 per year ($15 an hour), you fall just below average for wages in the US. That said, a full-time job making $15 an hour would put you well above poverty guidelines ($12,750 a year) for a single individual.

The average minimum wage worker must work nearly 97 hours per week to afford a two-bedroom rental home or 79 hours per week to afford a one-bedroom rental home at the average fair market rent. In no state can a person working full-time at the federal minimum wage afford a two-bedroom apartment at the Fair Market Rent.

$15 a hour isn’t enough. Yes, depending on where you live and what your expenses are that is almost twice minimum wage. Save up an amount that would equal pay for one year of rent and some food before moving out.

The real answer is as little as you can. If you are asking how much a person making $14 per hour can safely afford, that is about $600 per month, assuming utilities either included or a small amount. As a general rule, financially successful people keep the expense of a roof over their head below 1/4 of their income.

$15 an hour breaks down to: $2,600 per month (Annual ÷ 12 months) $31,200 per year ($15 x 2080 hours)