Budgeting and tax
Lesson 6 of 9
Building a monthly budget
Objective. Balance income, fixed costs, variable costs and savings.
The key idea
List fixed costs first, then variable ones, then treat savings as a bill you pay yourself. Income minus all of these should be zero or positive.
Worked example
Net £1,770, fixed £1,050, variable £400. What is left for savings?
- 1Total spending: 1,050 + 400 = 1,450.
- 21,770 − 1,450 = 320.
Answer: £320 a month
Practice
Each question comes with a picture and a listen button. Try it first, then reveal the answer.
Common mistake. Treating savings as whatever happens to be left over.
Your progress
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