How do I calculate the average monthly expenses?

Average monthly expenditure is the average of all expenses issued by a person, family or business, per month. Knowledge of average monthly expenditure helps to determine a realistic budget for anyone who is concerned about savings, expansion, excessive expenditure or improvement of expenditure habits. There are several easy ways to calculate average monthly expenses. This can be easy for an individual that works from one bank account but may be more complicated if a person has multiple accounts or often uses credit cards. You want to get an average, add the amount of money spent for a period of 12 consecutive months, then divided into 12. This will give an average of how much it has been spent per month.

The more general idea of ​​expenditure includes only monitoring of expenditure for one month. Each time to purchase or download from an account, add this number table, written list or budget software. Be sure to include automatic accounts such as credit cards, tools or rental. If OSBoth know that his expenditure habits are usually not varied from month to month, it can provide a relatively good idea of ​​average monthly spending.

6 In December, for example, expenditures are often higher for many people for traveling on holiday, gifts and other expenses once a year. Try to select a month where no extraordinary activities are planned, such as holidays or large holidays, or consider tracking for two or three months to get a clearer picture of the average expenditure.

Some experts suggest that it may be good to create an estimate of expenditure before the precise calculation of average monthly expenditure. Divide Expensses into basic categories such as rent, accounts, transport, entertainment, health care, clothing and food. Try to guess how much money is spent in each category per month. While some categories, such as rent, will be quite easy to find out is interesting porto fruit a person's concept of how much to spend on fun or food with real numbers. Knowing what is under or overvalued can help create a realistic budget for the future.

Analysis of data obtained by monitoring and averaging will help you create a sustainable budget. Some experts recommend converting the category of cost of income to facilitate modifications. If you want to do this, divide the amount of expenditure by the total amount of monthly income, and then multiply 100 to get a percentage. For example, if a person earns $ 1800 USD (USD) per month and spends $ 450 per month for food, the percentage of income would be (450/1800) x 100 or by or25%. If this person wants to increase their savings by 5% per month, this can be achieved by reducing food budget by $ 5% or $ 90 per month.