LESSON 3

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.

OTHER COURSES
OTHER LESSONS

LESSON 1

Making a Budget

LESSON 2

Income

LESSON 4

Being Realistic

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