Budget prepared by owner of a 24 hour daycare

January - June

Breakfast 3 children x 5 meals per week x 26 weeks = 390 breakfasts
Lunch 5 children x 5 meals per week x 26 weeks = 650 lunches
Snack 5 children x 10 snacks per week x 26 weeks = 1,300 snacks
Dinner 2 children x 3 meals per week x 26 weeks = 156 dinners

July - December

Breakfast 4 children x 5 meals per week x 26 weeks = 520 breakfasts
Lunch 6 children x 5 meals per week x 26 weeks = 780 lunches
Snack 6 children x 10 snacks per week x 26 weeks = 1,560 snacks
Dinner 3 children x 5 meals per week x 26 weeks = 390 dinners

Yearly total: 910 breakfasts
1,430 lunches
2,860 snacks
546 dinners

Breakfast 910x $.91 = $828.10
Lunch 1,430 x $1.65 = $2,359.50
Snack 2,860 x $.50 =$1,430.00
Dinner 546 x $1.72 = $939.12

Total $5,556.72

$5,556.72 is my estimated business food expense. I use this method to total all of my food receipts.

This is my budget prepared by Pam Watson who owns and operate a 24 hour daycare with my daughter Brandi. Pam is paid weekly and brings home a check for $350.00 each week. Brandi is paid every two weeks and brings home a check for $500.00 each pay day.
Brandi sometimes receives an additional amount for paid overtime and I will receives a bonus from time to time. However, since these amounts are not guaranteed, for budgeting purposes they are not considered. If and when the extra money is received it will be added to my income at that time.
Now, assume that Pam will be paid four times a month and Brandi will be paid twice a month, their total combined net income appears to be $2,400.00 per month. But using this assumption, as many people do, is incorrect.
During the year Pam will be paid 52 times for a yearly net income of $18,200. Brandi will be paid 26 times for a yearly net income of $13,000. Their combined yearly income of $31,200, when divided by 12 (months), yields a monthly income of $2,600.00. This is $200.00 a month more than the amount figured incorrectly above.
After arriving at our total monthly net income Pam and Brandi compile a list of all their known monthly expenses. Here is Pam and Brandi's list*:
Mortgage payment - - - - - - - - - - - - - - - 550.00
Auto loan - - - - - - - - - - - - - - - - - - 280.00
Auto insurance - - - - - - - - - - - - - - - - 120.00
Auto expenses (gas, etc.) - - - - - - - - - - 100.00
Groceries ($100.00/week) - - - - - - - - - - - 433.33
Utilities - - - - - - - - - - - - - - - - - - 110.00
Telephone - - - - - - - - - - - - - - - - - - 35.00
Medical - - - - - - - - - - - - - - - - - - - 30.00
Loan payment - - - - - - - - - - - - - - - - - 25.00
Life/Health insurance - - - - - - - - - - - - 180.00
Entertainment - - - - - - - - - - - - - - - - 75.00
Savings - - - - - - - - - - - - - - - - - - - 100.00
Weekly Cash ($50.00/week)- - - - - - - - - - - 216.66
-------
Total Expenses - - - - $2254.99
Subtracting the total expenses from the total monthly income leaves my family with a balance of $345.00. This amount is placed into an "expendable" account (on paper) and is the amount that Pam has free to spend each month on non-budgeted items.
In order for me to manage my budget I do the following:
1. The first month's budget is set up on paper showing each expense item and the "left over" amount in their expendable account.
2. At each pay period the amount received is placed in a checking account. If the amount received is the exact amount that was used to figure their budget, nothing changes. However, if the amount is greater or less than the figured amount, the difference is added to or deducted from my expendable account. It is very important that I account for each pay period in this way. For example, Brandi may take a day off, without pay, resulting in a loss of $50.00 for the pay period. When she receives her paycheck she must deduct the $50.00 from the budget's expendable account. By the same token, if Pam receives a bonus of $100.00 one week, the $100.00 is added to the expendable account. In this way my budget is compensated for the loss or gain of income.
3. Once a week the weekly cash amount of $50.00, as provided in my budget, is withdrawn from my checking account. The balance of the weekly cash account at the end of any given month may end up having a balance, or be negative, depending on whether the withdrawal date occurs four or five times during the month. This variance does not need to be compensated for as it will even out over the course of the year.
4. As each budget expense is paid, the amount is deducted from the item's budgeted amount. If the amount paid is less than the budgeted amount, a balance will remain. On the other hand, if more than the budgeted amount is paid, the account will go negative (will be less than zero). For expense items that have been configured using an average amount this is the normal case. The account will have a balance when the payment is less than average, and that balance will be available when the payment is greater than average.
5. Any payment for an item that is not listed in the budget is deducted from the expendable account balance. Any extra income, from any source, is added to the expendable account. The expendable account then becomes a sort of savings account from which money can be withdrawn as needed.
6. At the end of each month Pam will start over with a new piece of paper. The budget is again listed, but this time each item's budgeted amount is added to the balance left over (if any) from the previous month. If a negative balance is shown, it is subtracted from the budgeted amount and the new amount is listed. If it becomes necessary, an amount of money can be transferred by subtracting a dollar amount from any account and adding the same amount to the account needing it.
7. If after several months it is noted that any budget item is repeatedly going over or under budget a correction needs to be made. The budgeted amount for the month is changed to an amount that is closer to what is actually being spent. Any change will, or course, change the amount credited to the expendable account at the beginning of each month.
8. By using this budget I am confident enough that I will never find myself spending more money than what I will earn. I am also are aware that no budget plan can work without this commitment and diligence.
Budgeting involves understanding how much money you earn and spend over a period of time. When you create a budget you are creating a plan for spending and saving. Since 99.8% of my time is at the daycare I did my personal budget from that.