Efficient Reduce of Expenses - Essay Example

Budget Report Part Pies of my ClearCheckbook Spending Section i After taking a closer look at my broad spending habits in the past few weeks, I have realized that my overall expenditures have significantly increased in all the listed categories. From February, through March to April, I have spent a total of $3,972.97. Expenses under housing have changed between February and March because I opted for a cheaper option in March ($290.58) compared to February ($989.00). In April, I did not pay for my housing because I decided to seek my accommodations in the college dormitories. Because of these, it is evident that I am in a position to positively adjust to cutting costs on rental and utility costs in the coming months. Throughout the term, my General Merchandise expenses were valued at $314.20. This figure accounted for 7.9% of the total amount I spent. I decided to break down this percentage according to the amounts I spent each month, that is, 12.1% ($192.88) in February, 7.6% ($103.00) in March, and 3.9% ($18.32) in April. In this category, I have realized that I can make a considerable improvement. There are no variations in the amounts I spent weekly on general merchandise. However, my expenditure shows that I spent less in March-$103.00 compared to February-$192.88, and even less in April-$18.32. I spent more in February because I had to travel to Georgia to visit my cousin who was newly admitted to Georgia Institute of Technology. I spent much money in air tickets and in buying gifts and a few treats. I believe that the expenses of the following months will not escalate save for a few emergencies that may arise. For groceries, my expenses accounted for 15.20% of the total expenditure. This was valued at $603.63. I had to spend a lot in groceries in March-a total of $272.78 (reflecting 45.19% of the total amount spent on groceries for the term) because I fell ill and the doctors recommended taking more than four meals a day to cater for energy loses. April’s grocery expenses were much less since I had begun cutting on my budget. Grocery expenses in April were $151.99 (25.18%) and $178.86 (29.63%) in February. I am capable of cutting more on grocery expenses by 10% in May because I have identified the stores that sell similar products at lower prices. Restaurant/Bar expenses accounted for $871.81, reflecting 21.94% of the overall expenditure. This category included buying drinks for the occasional parties we hold in our favorite restaurant, purchasing party cups, hiring rooms when it is too late to reach home, and buying burgers and pizza at least once a week. It is surprising to note that in March, the expenses were valued at $456.34 (52.34% of the amount spent in Restaurant/Bar for the term). February and April accounted for 23.83% and 23.82% respectively. In the following months, I have allocated less amounts in prior for the personal expenses to avoid extravagance and blind spending. Finally, I have realized there is a great opportunity for reducing the huge amounts I spent on car and gasoline. For the 3 months, 8.57% of the total or $340.39 was spent on gas and car repair alone. I spent $86.00 in April, $230.39 in March, and $24.00 in February. I spent much in March because of the endless visits to the hospital to receive treatments and drug prescriptions. There is a great opportunity to cut on gasoline expenses because I have secured an internship in a company that is next to my sister’s workplace; she has agreed to give me free rides to and from work. Section ii For the past few months, my expenses majorly fell under categories such groceries, gas, shopping, rent, and partying with some of my friends. Apart from the part-time job in a restaurant during the weekends, my mother furnishes most of my expenses. The monthly expenditure totals to $3972.97. 32.21% of the total expenditure pays my rent, 22.60% caters for other important bills, and groceries consume 45.19% of the budget. I rely on the wages I receive from my part-time job because it helps in funding the party bills whenever I go out with my allies. This is very important because I do not have to rely on my parents for preliminary or unnecessary expenses. After analyzing my weekly and monthly expenses, I believe that the income from my part-time job to enough to manage the greatest portion of my budget supposing my mother does not send money at the right time of the month. Part 2 Individual versus Class Spending There are quite a lot of things to be observed from the graphs above. Firstly, I realized that my bills on rent accounted for amounts significantly higher than the value of class average. My apartment is located in one of the most expensive rental houses close to the campus. However, it is a walking distance particularly when am not late for the morning lessons. Back then, my housing/accommodation expenses were $989.00 in February and $290.58 in March. I have not paid any housing arrears in April. I strongly believe that these two figures (housing expenses in February and March) are not the class average’s accurate representation. The class average projection is below the actual figures because of factors such as incorrect documentation of the figures the other students spent on rent. My colleagues reported that they spent $0 in rent bills probably because they misunderstood contract agreements. These incorrect figures significantly brought down the class average. My expenses were 54% above the average. However, after reviewing and scaling down on my budget, I will be in a position to match the class average. Other categories also show that my values are higher. I believe the problem arises because other students have failed to correctly state their figures and that a good number of students are residing in the dormitories provided by the institution. Part 3 Section i Budget for the May: The Projected Month The calendar Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Section ii For the first week, my total expenditure will be $388. Lessons will be due on third and most definitely, I will be going to the gym from two to four in the evening. In the second week, I will spend $100. After every one and a half weeks, I often go for my groceries from the nearby stores. I will spend $90 on the groceries. The trend that I currently employ in filling my car tank is to spend $8 every week, and I will be spending $20 in addition to gas costs because I will attend a party held by one of my best friends. In the third week, I will spend $21-a figure that is significantly better than the amount spent in the past two weeks. Spending in the fourth week will entail gas, groceries, and visits to Caty’s Bar and Grill where we usually hold our parties. Expenses will sum up to $60. In the final week, I will allocate $15 for lunch with my friends. Consequently, I will have spent $600. This will be an indication of a significant improvement in my monthly expenditure compared to the previous months. If I properly apply this budget, I will be saving a lot. Section iii The 1st Action Plan: According to the strategy I have laid in cutting on my budget, I will not be attending every party as before. With these measures, I will realize a rise in my weekly savings especially on Fridays since I rarely cancelled party invitations before. The 2nd Action Plan: the second action plan will involve cutting back gas consumption. I have discussed with my sister about using her car to take me to and from the internship when it commences. To further cut on gas expenses, I will be using bus transport especially during the day. Works Cited ClearCheckbook.com. Budgets. Retrieved April 16, 2014, from web ClearCheckbook.com. Reports. Retrieved April 16, 2014, from web Read More