How to Manage Personal Expenses

Part of the Video Series How to Set a Budget

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Calculating Amount Paid for Other Expenses in this free series of personal finance video from our professional Certified Public Accountant (CPA).

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Video Transcript

How to Manage Personal Expenses
Now I'm going to talk about the amount paid for other expenses in column E. What we're talking about are food and household expense; clothing, entertainment, vacation and savings. Really the vacation and savings are a little bit different than the others because these are amounts the couple are trying to save and they already decided on how much they need for this. So, for example the $300 for a vacation, they've already paid that and the same is true for savings by simply putting it in a savings account. Now up here on the food and household, clothing and entertainment, if you look here at the $825.41, you can see that an easier way to do this is just to add it in by formula as the expenses occur. So which time the couple went to the grocery store, they simply noted the amount and put it into the formula. So it's equals $200.41 the first time, $225 the next time, $190.50 the third time, and then the fourth time $209.50. So that's how we get to the $825.41 which is what they spent all together. And since we really in this example just about three quarters of the way through the month this kinds of gives them an idea of whether they're over or under on a pretty big amount for this particular couple.

About the Expert

Expert: Tom Noah has been a Certified Public Accountant (CPA) for more than 27 years. In that time he has held positions at several companies as an accountant and as a director of financial planning. Read More