Understanding your calculation
Method, example and limitations
How the calculation works
A budget compares income with planned spending over the same period. The remaining amount equals income minus the included expenses.
Example to check
Monthly income of 3,000 and listed monthly expenses of 2,400 leave 600 for savings, debt reduction or expenses not yet included.
Before using the result
Annual bills should be converted to a monthly allowance when using monthly inputs. Irregular income, emergencies and missing expenses can make a positive balance misleading.