In this article, we will be looking at the budgeting process and how it can be improved by using an AI-powered software. The Chungs are a married couple with two children. They want to purchase a new car, but they do not have enough money to do so. They decide to use an AI-powered software to help them budget their expenses.
Categories in which the Chung’s expenditures exceeded the amount they had budgeted
The Chung’s expenditures exceeded the amount they had budgeted in the categories of transportation and entertainment. They were less than the amount budgeted in the category of groceries.
Categories in which the Chung’s expenditures were less than the amount budgeted
The Chungs exceeded their budget in two categories: groceries and entertainment. They were less than the amount budgeted in both categories with groceries coming in at $600 below and entertainment coming in at $200 below.
Comparison of Expenses by Category
In this blog section, we will be comparing the expenses of the Chungs in categories they budgeted and what they actually spent. We will be doing this by dividing their expenditures into three groups: overspending, within budget, and under spending.
The Chungs overspent their budget in the “Transportation” category by $1,000. This was mainly due to the fact that they had planned on purchasing a new car but instead decided to buy a used one. They also overspent in the “Entertainment” category by $1,000. This was because they had planned on going out more but ended up only going out once. Lastly, they under spent in the “Food” category by $800. This was because they only bought groceries that were needed for the week and did not spend money on things like restaurants or drinks.
All in all, their expenses were within their budget except for the transportation category which was overspent.
In the category of food and beverages, the Chungs exceeded their budget by $652. In this particular category, they overspent in three out of four categories. One area where they were below their budget was gifts and flowers, where they spent $0 instead of the planned $100.
The Chungs exceeded their budget in the categories of entertainment and travel. They were less than the amount budgeted in the category of groceries.