Yuya’s Personal Bookkeeping and Budget Preparation Service

HELPING WITH YOUR PERSONAL BUDGET AS YOUR PERSONAL BOOKKEEPER.

  • A BUDGET is a financial plan that takes income and expenses into account and provides estimates for how much you make and spend over a given period of time.
  • What does a personal bookkeeper do?
  • Bookkeeper. This person may provide concierge services for your personal finances, including paying your bills, balancing your checkbook and looking over your credit card statements. A bookkeeper may or may not have special training.

As personal finance all of your expenses fall into three overall categories:

1.- Fixed expenses.

2.- Periodic Expenses.

3.- variable Expenses.

Fixed Expenses

Fixed expenses are the easiest type of expense for which to prepare, because they come in at both a consistent interval and amount. For example, expenses like your rent or mortgage, your car insurance, and your internet bill are fixed.

Periodic Expenses

Periodic expenses are similar to fixed expenses. They still occur in predictable intervals, albeit much less frequent, and they can tend to vary in their amount.

Automotive expenses like regular oil changes, or your annual registration are great examples of periodic expenses. Additionally, if you are a business owner, quarterly taxes are likely one of your biggest periodic expenses.

Variable Expenses

You can break variable expenses into two sub-categories: necessary and discretionary.

The necessary portion of variable expenses are things like gas for your car, your electric bill, and your monthly food budget. While they might not be a consistent amount, or occur at a predictable interval, they are still necessary.

The discretionary portion of variable expenses are things like recreational spending. For example, buying a new pair of shoes that you didn’t technically ‘need’, would be considered a variable, discretionary expense.

However, regardless of whether a variable expense is necessary or discretionary, part of what makes it variable is that you can control it in some way with your Expenses.

 Of an individual other than those for business or investment purposes. Personal expenses are not deductible unless specifically allowed under the tax law.

Two examples of deductible personal expenses are medical expenses and personal property tax paid on personal-use property.

The 3 Types of Expenses: Summary

The more you understand these 3 types of expenses, the better you can financially prepare for them. To review:

  • Fixed Expenses occur in predictable amounts and intervals. In most cases, they occur on a monthly basis.
  • Periodic Expenses are similar to fixed expenses, but they occur much less frequently. (i.e. quarterly or annually)
  • Variable Expenses can be influenced by your financial behavior and decision-making. Additionally, they can be divided into 2 sub-categories: necessary or discretionary.

STARTING WITH YOUR BUDGET

We Will need these five steps to start you in a healthy budget:

  1. Bank Account.
  2. Establish a Bookkeeping System
  1. Categorize Your Expenses.
  2. Establish a budget.
  3. Software for Invoicing and Payroll.

Will Assembling Your Budget as this:

  1. Housing (25-35 percent) …
  2. Transportation (10-15 percent) …
  3. Food (10-15 percent) …
  4. Utilities (5-10 percent) …
  5. Insurance (10-25 percent) …
  6. Medical & Healthcare (5-10 percent) …
  7. Saving, Investing, & Debt Payments (10-20 percent)

Will need to follow these simple steps to Creating a Budget You’ll Actually Follow:

  1. STEP 1: MONEY IN. List your sources of income for the month. …
  2. STEP 2: MONEY OUT. Next, look back over your last few months of bank statements to help you list all of your monthly expenses. …
  3. STEP 3: ASSESS THE SITUATION. …
  4. STEP 4: Using and Maintaining Your Budget.

Not everyone has the same fixed expenses, but here are a few of the most common examples:

  • Mortgage or rent payments.
  • Loans (student loans, car loans, home equity loans)
  • Insurance (car insurance, health insurance, life insurance)
  • Daycare.
  • Tuition.
  • Utilities.

Expenses of an individual other than those for business or investment purposes. Personal expenses are not deductible unless specifically allowed under the tax law. Two examples of deductible personal expenses are medical expenses and personal property tax paid on personal-use property.