Budgeting for beginners – How to start budgeting

A budget calculator can help you determine your financial health. Not only can a budgetary calculator show you your current money situation, you can use it to look at other scenarios. For example, if you get a raise you can see how this affects your finances. If your rent increases, you can determine what spending to cut to compensate. You can use budget calculators in many different ways to learn more about your finances.

If you are applying for a mortgage or other loan, your bank will often have a budget calculating tool on their website. The goal of this tool is to see how the loan payments will affect your budget. You would visit the website, and enter your budget information into the online form. Enter all your income sources where indicated. Do the same for your expenses. The calculator will add your loan payment to the calculation to show what happens to your bottom line.

Colleges and universities may provide this type of budget estimating calculator. Parents can enter their current income and expenses. The calculator will estimate the tuition costs and their impact on the family budget. This type of calculator tool might also provide estimates for housing costs, food costs, and text books. Use this budget tool to compare costs between different colleges.

Home improvement budget calculators can help you decide whether to proceed with a remodeling project. Tell the calculator about your current home, mortgage, and the type of renovation you are considering. The budget estimator can provide rough guesses at the total cost of the project, including raw materials and labor. It might even give you an idea how the renovation might affect your home’s value. If the budget estimate exceeds your project budget, perhaps you can lower the square footage or use alternate materials to reduce the budget cost of the project.

These budget tools are often found online for free for various financial transactions. These calculators are often just estimates. However, the more accurate information you enter into the calculator, the better budget comparison you get. The budget calculator makes a good “what if” tool to estimate how your finances will be affected by certain financial moves.