Final answer:
To prepare monthly cash budgets for January, February, and March, estimate your income and expenses for each month, subtract expenses from income, and make adjustments to have a balanced or surplus budget each month.
Step-by-step explanation:
To prepare monthly cash budgets for January, February, and March, you need to estimate your income and expenses for each month. Start by identifying your sources of income, such as your job, investments, or any other sources of money you expect to receive during the three months. Then, list all your expenses, including fixed expenses like rent or mortgage payments, utilities, and loan payments, as well as variable expenses like groceries, transportation, and entertainment.
Once you have identified your income and expenses, you can create a budget for each month by subtracting your total expenses from your total income. If your income exceeds your expenses, you have a surplus. If your expenses exceed your income, you have a deficit. Make adjustments to your budget if necessary to ensure that you have a balanced or surplus budget each month.
Here's an example:
January:
- Total Income: $3000
- Total Expenses: $2500
- Surplus: $500
February:
- Total Income: $3200
- Total Expenses: $2800
- Surplus: $400
March:
- Total Income: $2900
- Total Expenses: $3000
- Deficit: -$100