budget

Name
Professor
Course
Date
Revised budget
Monthly Budget
Income and expenses Old budget New Budget One Year Total
Income Total income 1850 2190 26280
Fixed to expenses Rent 600 600 7200
Insurance 475 475 5700
Rental insurance 20 20 240
Laptop – 50 600
Total fixed expenses 1095 1145 13740
Variable expenses Utilities 230 230 2760
Groceries 300 300 3600
Discretionary 75 55 660
Entertainment 50 40 480
Total variable expenses 655 625 7500
Totals Total expenses 1750 1770 21240
Net savings 100 420 5040
Entertainment and discretionary categories got less allocation of funds in the new budget which aimed at reducing the total expenses and boost the amount available for saving. Budgeting helps in having a plan on how to handle finances for an individual.
Reducing the size of expenses gives a chance to save more to buy the planned laptop. Reducing the amount spent on entertainment by $10 and discretionary cost by $20 provides an additional $30 a month that goes to funding buying the planned laptop.
After buying the planned laptop, there will be more than $5040 available for saving. This amount of money can be channeled to funding savings for the college education. In the end, reducing the number of expenses increases the available funds for projects that are long-term.