Bob earns €30,000 per annum after tax. He has €2,000 cash in his current account. Draft a household budget for Bob using the headings Fixed, Irregular and Discretionary for the months January to June from the following information.
Mortgage €1,000 per month; Electricity €240 (every second month from Feb); Car NCT repairs €300 in Feb; Household food and other expenses €1,000 per month; Entertainment €100 per month; Petrol €380 per month; Gym membership €500 in January.
LO 1.1 1.2 1.12
6. How can we revise a budget if our circumstances change?
A person or a family’s circumstances may change after their budget has been prepared.
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Income can change upwards or downwards due to a promotion, change of employment or redundancy. Expenditure may rise due to increases in the prices of items such as food, energy costs and household property taxes. Money may be needed for unexpected items of expenditure such as car or house repairs. The birth of a new baby will mean lots of extra expenditure. Expenditure can fall, for example, when adult children move out to live in their own accommodation.
