Expenditure
An effective budget is realistic about both income and expenditure.
While saving for the console, which is a long-term goal, what other expenditure will you have?
Perhaps you go to the cinema with friends each month. You don’t want to miss this time with friends because it is important to your well-being. You also subscribe to a music streaming app which costs 20aed every month.
|
INCOME |
|
|
Source |
Annual income |
|
Pocket money (50aed each week) |
50 x 52 = 2,600aed |
|
Birthday money |
500aed |
|
TOTAL |
3,100aed |
|
EXPENDITURE |
|
|
Source |
Annual expenditure |
|
Cinema visits (80aed monthly) |
80 x 12 = 960 |
|
Music app (20aed monthly) |
20 x 12 = 240 |
|
TOTAL |
1,200aed |
|
ANNUAL SAVINGS |
3,100 – 1,200 = 1,900 |
If there is no way of increasing income or reducing expenditure, then you would not be able to achieve your goal.
Needs and Wants 
Saving 
