‘For Dummies' is a series of books that guides new comers in any field. Budget for dummies is a guide to people who are making budgets for the first time. Budget is just a list of your expenditure and income, but not after the money is spent or earned. It is a forecast or plan of what you will spend and what you will earn for a short period in future, say, a month, or a year. Budget is very essential for anyone as the money we earn must be properly spent. If not properly managed the expenditure will exceed the income and there will be a deficit which will affect both the home and a business organization. So ‘budget for dummies' must be known by all who are new to budgets.

Preparation of budgets for dummies is not very difficult. Few steps must be followed which will make budget for dummies easier. First prepare a list of the major expenses. Divide the expense in to different categories. The essentials must form an important category. These expenses will be incurred every month without fail. For example rent. Others are miscellaneous expenses that occur in one month and not in the next month. For example wedding gift.

HOW TOP REPARE BUDGET FOR DUMMIES: Take a chart paper and divide it in to two halves by drawing a line in the centre. In the left side list the various items of expenditure and the amount spent in the right side adjacent to the item. There are even soft wares called ‘Budgets for Dummies' available. But preparing a budget on your own is interesting as well as makes you saving-minded. Savings must be the first priority given in a budget for dummies because the main aim of a budget is to increase the savings. If you want to compare the actual amount with the budgeted amount at the end of the budgeting period, then divide the amount column also in to two, with one column for budgeted amount and the other for the actual amount.

MAKING ADJUSTMENTS IN BUDGET FOR DUMMIES: Now first sum up the essentials. Deduct from the total income. Deduct the total of the extra expenses incurred. The balance is the saving. If the saving amount is lesser than what you estimated, then cut some of the extra expenses and if possible the essentials which is practically very difficult. Adding to your income side is also welcome. An additional income always helps.

It is clear that Budget for dummies is an important item in the list of “for dummies”. So go ahead and make budget.