The financial plans or Budgets are usually related to a particular standard of living. But a realistic budget is one which reduces probability of oversight of potential expenses, reconciles expenditures with plans for spending and compares the proportion of expenditure with priorities in goal attainment. A realistic budget should include the following categories.
Since the budget or the financial plan are personal, there no one ‘right’ way or system of making the budget or planning the expenditures. In realistic budget some methods of reducing expenditures to a manageable list are essential.