Acknowledgement

Alhamdulillah, praised to The Greatest Creator, our Almighty, Allah S.W.T for His
blessed to me by giving chances to complete this assignment just in the times. This
assignment has help me a lot in gaining so many experiences and applicable
knowledge that can be apply in my future life especially when I be a teacher someday.
A big appreciation to my parents, which have help me a lot in sending their finding about
the personal budget schemes to me so that I can complete my assignment well.

Also special thanks to my Basic Math’s lecturer, Puan Zalina Mohammad who
has help me a lot in guiding me through the ways in completing this assignment.
Without her, I can not finish it. Not forgotten, to all my friends especially to all the
students from Kajian Sosial B class that are willing and did not mind to share their ideas
and knowledge so I can have an image to finish this assignment. Without them, I will fail
to manage this work. They are always with me. I am really thankful and lucky having
them by my side.

Lastly, I would like to thanks to all of people who had been beside me throughout
the day and night so that I could finish this assignment on time. I am really appreciating
their commitment to me.

Thank you.

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 Content
No Tittle Page

1 Introduction 3

2 Rationale 4

3 Definitions 5

4 Monthly Budget 6

5 Annual Budget 11

6 Breakdown of the Expenses 12

7 Savings 13

8 References 14

9 Reflections 17

2
 Introduction

A well-planned budget is important in our life in order to make our life easier. As
a graduated teacher, it is important to have a well-planned budget. It is because
graduated teachers are not financially stable since they are still fresh in teaching career.
In order to organize a monthly budget, one should list all their necessarily and needs. It
is to ensure that they would not go over-budget and teach themselves to spend wisely.

After finished my studies in Institut Perguruan Bahasa Antarabangsa, I was

posted in Sekolah Kebangsaan Bukit Cempaka, Rawang. My salary as a teacher is
RM2480. I do direct selling as a part time job which is selling AVON products only in the
weekends. I managed get RM50 per month. This will make my net salary is RM2530.
The distance between school and my resident is about 5 km. It takes about 25 minutes
to reach school by car and 20 minutes by train. Usually I took train to the school to avoid
traffic jam and to save time and money. I rented a house there with a few friends.

Besides, I had to expense my money on some needs. Some parts of my money

are spent on foods, house rent, car payment, bills, give to parents and others.
Therefore, I need to make a budget to ensure that my money is enough for me until the
end of the month. Furthermore, I can have some savings for the unexpected situations.

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 Rationale
The rational to making a budget are:

Take advantage of opportunities

Knowing the exact state of your personal monetary affairs, and being in control of
them, allows you to take advantage of opportunities that you might otherwise miss.
Have you ever wondered if you could afford something? With a budget, you will never
have to wonder again—you will know.

Extra time
All your financial transactions are automatically organized for tax time, for creditor
questions, in fact, for any query which may come up regarding how and when you
spent money. Being armed with such information sure saves time digging through old
records.

Extra money
This might be everyone's favorite benefit. A budget will almost certainly produce extra
money for you to do with as you wish. Hidden fees and lost interest paid to outsiders
can be eliminated forever. Unnecessary expenditures, once identified, can be
stripped out. Savings, even small ones, can be accumulated and made to work for
you.

Definitions
4
Budget

A personal budget is a finance plan that allocates future personal income towards
expenses, savings and debt repayment. Past spending and personal debt are
considered when creating a personal budget. There are several methods and tools
available for creating, using and adjusting a personal budget.

Income

Income refers to the consumption and savings opportunity gained by an entity within a
specified time frame, which is generally expressed in monetary terms. However, for
households and individuals, "income is the sum of all the wages, salaries, profits,
interests’ payments, rents and other forms of earnings received in a given period of
time." For firms, income generally refers to net-profit: what remains of revenue after
expenses have been subtracted. In the field of public economics, it may refer to the
accumulation of both monetary and non-monetary consumption ability, the former being
used as a proxy for total income.

Income tax

Annual tax levied by the Federal government, most states, and some local
governments, on an individual's or corporation's net profit.

Expenses

In common usage, an expense or expenditure is an outflow of money to another person

or group to pay for an item or service, or for a category of costs.

Monthly Budget

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MONTHLY INCOME:

INCOME SALARY :

My salary = RM 1630.00

Cola allowance = RM 400.00

Civil service allowance (EKA) = RM 150.00

House allowance = RM 350.00

DEDUCTION :

Income tax = RM 50.00

OTHER SOURCES :

Direct Selling = RM50.00

EXPLAINATION OF MY SALARY

Deduction Other Total

My Salary Allowances Income tax Sources (RM)
Months
(RM) (RM) (RM) (RM)

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 January 1630.00 900.00 50.00 50.00 2530.00

February 1630.00 900.00 50.00 50.00 2530.00

Mac 1630.00 900.00 50.00 50.00 2530.00

April 1630.00 900.00 50.00 50.00 2530.00

Mei 1630.00 900.00 50.00 50.00 2530.00

Jun 1630.00 900.00 50.00 50.00 2530.00

July 1630.00 900.00 50.00 50.00 2530.00

August 1630.00 900.00 50.00 50.00 2530.00

September 1630.00 900.00 50.00 50.00 2530.00

October 1630.00 900.00 50.00 50.00 2530.00

November 1630.00 900.00 50.00 50.00 2530.00

December 1630.00 900.00 50.00 50.00 2530.00

Total 19560.00 10800.00 600.00 600.00 30360.00

MY NET SALARY

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 My Salary %
Allowances %
Other Sources %

Every month, I received fixed salary as a teacher for RM 1630. The allowances
such as Cola allowance, Civil service allowance (EKA) and House allowance are given
on every month. They were RM900 per month. RM50 was deducted for Income tax. But
I use RM50 income from my direct selling activity which is done by me only in the
weekend to pay for this tax so I can save my money. The total is RM2530.

Calculation:

Fixed salary as a teacher : RM 1630

Allowances : + RM 900
RM 2530

RM 2530
Income tax : - RM 50
RM 2480

RM 2480
Income from direct selling : + RM 50
RM 2530 = My Net Salary

MONTHLY EXPENSES

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Net Salary = RM 2530

(-)Expenditure:

Expenditure Cost
1. Food RM400.00
2. Household RM100.00
3. Residential cost RM300.00
4. Bills (Electrical, water, prepaid) RM150.00
5. Car payment RM300.00
6. Transportation and petrol RM150.00
7. Parents RM250.00
8. Students’ aids RM200.00
9. Emergency RM100.00
10. Total RM1950.00

Net salary : RM 2530

Total expenditure : - RM 1950
Balance : RM 580 = for my saving

MONTHLY BUDGET

My basic salary is RM 2530.I spend my salary on food, household, residential

rent, water, electrical and prepaid bills, car payment, transportation and petrol, parents,
students’ aid, and for emergency. I also got RM580 of the balance from the usage as
my saving. I manage my salary and I give high priority for the important things. I used

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15.81% of my salary on foods. It is about RM400 a month when I put RM3 for a
breakfast, RM5 for a lunch and RM5 for a dinner per day. Luckily I live with my friends.
So I just spend 3.95% from my net salary for household stuff such as toiletries. 11.86 %
of my salary on residential cost, 5.93% of my salary on paying bills such as water,
electrical and prepaid. I just bought a secondhand car so I just spend RM300 per month
which is 11.86% from my net salary on my car payment. 5.93% is spent for
transportation and petrol because I just took train to my school. My parents are
government’ servants and they already got their pensions after their retirement.
Furthermore, my other sisters also give them some money so I just spend 9.88% for
them. I’m also spending 7.91% for students’ aids and 3.95% for emergency. All the
expenditures are about 77.08% from my net salary. Lastly, I got 22.92% of my salary for

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saving.

Percentages (%)

7.91 3.95 15.81 1.    Food

2.    Household
9.88 3.    Residential cost
3.95 4.    Bills (Electrical, water, prepaid)
5.    Car payment
6.    Transportation and petrol
7.    Parents
5.93 8.    Students’ aids
11.86
9.    Emergency
11.86 5.93

Annual Budget
I classified this expenditure into several groups.

Food + Household RM400 + RM100 = RM500

Residential cost + Bills RM300 + RM150 = RM450

Car payment + Transportation and petrol RM300 + RM150 = RM450

Parents + Students’ aid + Emergency RM250 + RM200 + RM100 = RM550

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Saving =RM580

Items Food
+house Residentia Car payment Parents Savings
hole l cost +transportatio +Students’aid (RM)
goods +Bills n +Emergency
Month
(RM) (RM) and petrol (RM)
s
(RM)
January 500.00 450.00 450.00 550.00 580.00
February 500.00 450.00 450.00 550.00 580.00
March 500.00 450.00 450.00 550.00 580.00
April 500.00 450.00 450.00 550.00 580.00
May 500.00 450.00 450.00 550.00 580.00
Jun 500.00 450.00 450.00 550.00 580.00
July 500.00 450.00 450.00 550.00 580.00
August 500.00 450.00 450.00 550.00 580.00
Septembe 500.00 450.00 450.00 550.00 580.00
r
October 500.00 450.00 450.00 550.00 580.00
November 500.00 450.00 450.00 550.00 580.00
December 500.00 450.00 450.00 550.00 580.00
Total 6000.00 5400.00 5400.00 6600.00 6960.00

Breakdown Of The Expenses

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 Breakdown of the Expenses

31% Food & House hole goods

35%
Residential cost
Paying bills
Car payment, transportation,
petrol

12% 23%

The exploded doughnut represents the breakdown off the expenses. The least
expenses item are paying bills at 11.54%. 23.08% are for residential cost while 30.77%
are for food and household goods. Every month, I spent 34.62% for car payment,
transportation and petrol.

Savings
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Income – expenditure = savings

After manage my money on the important things, there are RM580 balance for
my saving. The best ways to manage the money is put it in the savings account. After
keep looking for the best bank, I prefer to keep all my saving at CIMB Bank which their
interest rate is just 0.20% when your savings up to RM 1000.

Months Savings Interest Total Total

(RM) (RM) Interest Savings
(RM) (RM)
January 580.00 - - 580.00
February 580.00 1160.00×0.20% 2.32 1162.32
March 580.00 1742.32×0.20% 3.48 1745.80
April 580.00 2325.80×0.20% 4.65 2330.45
May 580.00 2910.45×0.20% 5.82 2916.27
June 580.00 3496.27×0.20% 6.99 3503.26
July 580.00 4083.26×0.20% 8.17 4091.43
August 580.00 4671.43×0.20% 9.34 4680.77
Septembe 580.00 5260.77×0.20% 10.52 5271.29
r
October 580.00 5851.29×0.20% 11.70 5862.99
November 580.00 6442.99×0.20% 12.89 6455.86
December 580.00 7035.88×0.20% 14.07 7049.95

The total amount that we get from the interest for one year is RM 89.95. The total
saving for a year is RM 7049.95.

Reflection
Name: Nur Zalinda binti Ab Razak

IC No: 910208-11-5396

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Course: PPISMP Kajian Sosial B

Assalamualaikum. First of all, I am very thankful to The Greatest Creator, Allah

S.W.T that I am able to finish this task within the time period with His blessings. I want
to thank my lecturer, Puan Zalina Mohammad for giving me good explainations on this
assignment. Without her guidance, I will not know how to do this assignment. I also
want to thank my partner for this assignment, Noor Zafirah Binti Zainol which helped me
during the process of completing this assignment. All the information shared by her was
very helpful. Last but not least, I want to thank the entire person who lends their helping
hands whether directly or indirectly until this assignment can be finished in time.

Within the process of doing this project, I faced so many challenges. But as a
teacher to be, I use all my hard work to complete this task with patient. From this
assignment, I am able to understand how important to prepare a budget so that we will
not be over-budget and always prepare for something unpredictable such as accidents,
health problems and many more which have to use a lot of money in sudden. Besides
that, I feel lucky to do this assignment because this assignment makes me understand
more on mathematics’ topics such as interest and percentage.

This assignment also taught me about new things such as how much bank
interest, car payment, standard electrical and phone bills, petrol usage per month, and
other expenses. I have to do some researches and even asking to my parents to know
about all this expenses and it was quite a nice experience. After knowing all this stuff, I
surely will plan a budget from now on.

There are many problems I faced in the process to finish this assignment. One of
them is the absent of printer. In this area, I cannot find any store which has the printer
service. Therefore, it was really hard to print this assignment. Luckily, my partner got a
printer with full ink which is bought just after we got our allowances.

Once again I would like to thank all the persons which have helped me a lot
during the process of finishing this assignment.

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 Reflection
Name: Noor Zafirah Binti Zainol

IC No: 910906-10-6198

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Course: PPISMP Kajian Sosial B

Assalamualaikum. Alhamdulillah, praised to Allah the Almighty for His blessing

until I can finish this assignment within the period given. Without His blessing I cannot
do this assignment at all.

During the process of finishing this assignment, I got so many problems. At first, I
do not know how to do any part in this assignment but after the guidance from so many
people, I am able to understand the concept. It is also a tiring process to look for
reference in the internet. Luckily, my classmates were so kind and generous sharing
their findings.

From this assignment, I learn a lot of things. Before this I do not know how much
a teacher’s salary, bank interest in saving an account, car payment per month and
payment for all sorts of bills. Moreover, after doing this assignment I do understand the
rationale doing a budget. I will surely plan a budget after this. Besides that, I understand
about mathematics deeper. My partner taught me a lot about it such as, interest.

There are so many people I would like to thank. Firstly, thanks to my

Mathematics’ lecturer, Mrs. Zalina Mohammad that had taught me about this set topic.
She also gave me a complete explaination on how to do this assignment. Without her
guidance, this assignment cannot be completed as it is now. Secondly, I want to thank
my partner in this work project, Nur Zalinda Binti Ab Razak. She was really hardworking
and giving a lot of ideas when we discussed about this set topic. I feel very lucky to
have her as my partner. The last but not least, I want to thank everyone which involved
in this assignment whether directly or indirectly. Thank you.

References
Wittwer, J. (2008, April 12). How to make a budget. Retrieved September 28, 2009,
from http://www.vertex42.com/ExcelArticles/how-to-make-a-budget.html

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Wikipedia. (2009). Expenses. Retrieved September 28, 200

, from http://en.wikipedia.org/wiki/Expenses

Wikipedia. (n.d). Personal finance budget. Retrieved September 28, 2009, from
http://www.selfgrowth.com/articles/Definition_Personal_Finance_Budget.html

Wikipedia. (2009). Income. Retrieved September 28, 2009 from

http://en.wikipedia.org/wiki/Income

Investor words (n.d) Income tax. Retrieved September 28, 2009 from
http://www.investorwords.com/2411/income_tax.html

Lukac, M (2006). Reasons to budget. Retrieved September 28, 2009 from

http://ezinearticles.com/?Reasons-to-Budget&id=244909

(n.d) Used car; car price Retrieved September 29, 2009 from http://ezinearticles.com/?
Reasons-to-Budget&id=244909

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