Fomulating Budget Plan - Reverse Math Theory

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Authored by @sensibllecast

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What's Good Hive

Today I will be making an entry for HivePH 3rd - Formulate A Budget Plan. Since I missed making for the first and second Week entry, I'll just be sharing a method or theory if you may for my self, if I will thinking of Long term budget planning.

Take note: this is not a financial advise, and possibly not reliable, but feel free to use it as yours, you'll never know it might works. Important thing is "What works, works.
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Here's what I know

So, This System is What I call "Reverse Math Theory". Forewarning this may not be applicable for everyone but if you're into Selling, A business owner, Real estate, E-commerce, FBA This is definitely workable for you. Now the next questions are:

  • How do I use this?
  • How can I apply it?
  • How can this help me long term?
  • Is it realistic?

How do I Use It?

So first I usually determine the amount I am comfortable with, a definitive number, which by the way with reverse math you can always adjust and you can determine pretty much from high to low or vise versa, and I do the reverse math going to the End point and back knowing endpoint number which is x by dividing x to 4 weeks and 25 days, and 12 hours in a work day.

Example:
If Comfortable amount = 100,000
If in 4 weeks = 25,000/week
If in 5 workdays in a week = 5,000 a day
(Now I know you would say that is impossible, and not doable so like I said this is not applicable for anyone and but if you are in selling or the ones I mentioned above this may work for you.)

And this is the start of the Reverse Math Magic

Ad astra per aspera

If in 25 days (which is minimum working days): 100,000 / 20 days = 5,000

 5,000 is the amount I need to earn per day in 25 days.

If in 12 hours per day: 5,000 / 12 hours = 416.67 per hour`

I only need to sell 416.66 per hour for the next 12 hours in a day.

Is it starting to make sense now? It may seem impossible but remember I am only computing for 20 days 12 hours per day which, If I extend the number of days or hours or extra income that I have, it could possibly create more. This example is very conservative already.

How can I apply it?

So like what I said earlier this very much applicable if your in any form of Sales work, regardless if you have a E-commerce, Real estate, or Business, let alone as simple as a Canteen

Example:

Let's say you have a Canteen with 10 tables at a conservative rate and you are situated near school or an office building with an occupancy rate of 600 people and you're selling 100 per meal, if I take only 30% of the 600 which is about 180 people

180 people x 100 meal = 18,000 gross income every day for 20 days

You possible gross income would be 360,000 per month.

If you're in an E-commerce FBAs industry, Selling beauty products, baby products, household products, and an item cost about 200 - 500 rate per item, that would be a possible easy sale right?

How can this help me long term?

This will help anyone long term in a sense of, if the (x) amount with the number shown above, I can either increase or decrease my target goal for adjustment, I could start of 10,000 to 20,000 to 50,000 to 100,000, personally I would go for the higher multiplier, for me its easier to adjust the number.

Now if I am reaching the higher number, and the system works for 3 months, then I would set a higher goal for the next 3 month, and so on.

Is it realistic?

To me it is, since I already have the solution for the target outcome, now my only Problem to solve would be is the How, In which I already mentioned, this method was designed for the Seller Type of business.

Another consideration are:

  • Winning Products (What are you selling / Niche Market)
  • Location (Where you are selling)
  • Competitive (Pricing, Fast selling)

Formulating Expenses and other Charges

X = (Gross Income) - (30-40% Expenses) - (40% Savings/reinvest) - (20% my reward)depending on your preference

Why I set it at 30/40-40-20? I would always assume my expense with bills, business utilities, pretty much this is a must control, 40% for savings or reinvest, because I choose to reinvest now rather than later or if not just safe keep until needed, I'm a minimalist so, I only buy stuff that is Needed. 20% mostly for extra or to self.


Do you think this will work for you? How do you find this method? Do you think this is doable?

Feel free to comment below.


Disclaimer: This is NOT a Financial Advise nor A Professional Perspective, this is just my personal method that I wish to share. This may or may not be useful and/or may not apply to you.
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14 comments
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I would put 15% to myself. I do not spend on things that I do not believe it has that value. But today, I spent $2 on nitro. Sadt. It is not part of my budget, but yeah, I am expecting expenses on the spot. Thanks for sharing this, Mebu! Definitely helpful selling my NFT art!

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15% is cruelty to self haha, you work to make a life, not, live to work. 🤣 to me its better than spending for cigarette same price 🥶 so yea. Lets just werk merr for zii $2 dollaaa 😬 thanks for dropping by bebu and i am happy to help you with your NFT collections!

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Nabasa ko na mebu 😌 kahit di maka keep up yong bobo kong mind basta ang IMPORTANTE IS MAHALAGA
nabasa ko 😌 HAHAHA

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Dear @sensiblecast,
Your support for the current Hive Authentication Services proposal (#194) is much appreciated but it will expire in a few days!
May I ask you to review and support the new proposal (https://peakd.com/me/proposals/240) so I can continue to improve and maintain this service?
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This is achievable if you have good and stable business, but anyway, businessman ka naman, so yeah, that's possible. I'll allocate 30-30-30-10 if that's my budget plan, 10% for coffee. 😆

Next time pala sa Hive Ph mo post yung entry mo please, mahirap po maghanap. Hihi.

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ay hahah ngayon ko lang napansin na di ko pala nalagay sa Hive Ph community 🤦‍♂ sorrryyyy but thanks for dropping by aand reading through! This is achievable, and yung can save the 20% for the next 3 months to start of a small coffee business which in 6months you will then have fee coffee and have 15% income every month 😁 and on the 9th month make a new branch so thats gonna be 25% income from the initial 20% coffee saving hihihi

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40-40-20 is doable. Unfortunately, it's not for me. Most of the time 100% is for the bills and expenses. 🤣 20% for myself every month is hard to do, even the 40% savings. The sad reality of my life. But I'm targeting to start doing this by next year. Hopefully. 🙏

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Haha pinakita na ni world sayo yung reality recently diba? Its always good may target goal. Hehe good luck @kneelyrac! 🤙

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