1. What is Monthly Budgeting?

Monthly budgeting is the process of tracking income and expenses to determine your financial surplus or deficit each month. It helps individuals and families manage their finances effectively.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• Monthly Income — All sources of income in a month (USD)
• Monthly Expenses — All expenditures in a month (USD)

Explanation: A positive result indicates a surplus (savings), while a negative result indicates a deficit.

3. Importance of Budgeting

Details: Regular budgeting helps maintain financial health, plan for future expenses, save for goals, and avoid debt accumulation.

4. Using the Calculator

Tips: Enter your total monthly income and expenses in USD. Be sure to include all regular income sources and expense categories for accurate results.

5. Frequently Asked Questions (FAQ)

Q1: What counts as monthly income?
A: Include all regular income sources - salary, freelance work, investments, rental income, etc.

Q2: What should be included in monthly expenses?
A: All regular expenditures - rent/mortgage, utilities, groceries, transportation, entertainment, loan payments, etc.

Q3: What is a good monthly surplus percentage?
A: Financial experts often recommend saving 20% of your income, but this varies based on individual circumstances.

Q4: How often should I review my budget?
A: Monthly reviews are ideal, with more detailed quarterly and annual assessments.

Q5: What if I consistently have a deficit?
A: Consider reducing discretionary spending, increasing income, or consulting a financial advisor.