Under participatory budgeting a budget matrix chart is considered as an important tool. It can apply to individual groups, various subcategories and levels. As of the home financial budgeting a picture can be created with the help of spreadsheet about the spending pattern of money. A budget matrix helps in comparing the priorities versus the various shortfalls.
How to Create a Budget Matrix
It is generally a table having information and can be influenced by family goals and priorities. Money can be allotted for individual priorities and goals once they are established. Before the final development of budget matrix many tables are prepared. With the help of matrix funds can be allocated by goals or other areas.
Establish Goals and Priorities
Design a table including all family areas. Consider these areas as segments of life like kitchen, sports, eating out, movie, church, etc. On the whole any event which is considered important enough to be a key segment of life. Put each of these in the chart at the top and place a label in each table box. Put a theme or family members name vertically down on the edge of the chart.
Fill in the Budget Matrix Chart
Consider a particular segment of life, go to its label on the top of the page and write the total budget allocated for it in the last row of the column of the particular label. Then divide the amount and allocate to every person according to their requirement. Repeat the process for all items in the home budget matrix spreadsheet.
How to Create a Personal Budget Matrix
Every person in the family has their own priority areas. Everyone can create their own personal matrix in the same manner as the main budget matrix chart by knowing the sources of their allowances and then totaling them. The sources of income can be the monthly allowances, birthday allowances, income from car wash or other works, etc. The priorities are mentioned on the top of the chart and allocation of funds is done on the basis of these priorities. If the funds are found to be deficit, adjustment through cuts in the funds allocated for other items can be done.
With the help of this method every family member will learn to budget their own money and contribute to the overall budget of the family.