Disclaimer: I am not an expert, i am simply sharing how I build my budget and what works for me. This is not a strict guideline, do what works for you!
I hope this budget can help you get clarity and take the first step into financial stability!
1. The first thing you need to create a budget is to calculate the fixed monthly income. If you are someone who either receives the steady amount monthly ( ex: salaried employer) this should be easy to figure out. If you don’t have a steady or reliable month to month amount, use the minimum amount that you can expect. This should be done if you are paid commission and or tips.
2. Next you want to begin to determine the amount you need to sustain your lifestyle. Start off by listing each bill and the amount allotted for each. If you have a bill that fluctuates like a water or utility bill, use the greatest amount you’ve previously paid for that service.
3. Next, you want to determine the amount you need for basic necessities. This includes the money needed for food, gas, toiletries and other house needs.
4. Delegate a monthly saving amount. Read our last blog post about tips for saving and how to get the right amount for you to save monthly here.
5. Keep a “Rainy Day Fund”.You never want every penny that you make accounted for! Never designate all of you money, instead leave yourself a grace of at least $50 monthly just in case an unexpected expense comes up.
6. Always leave something for yourself! I emphasize this because I think it s important to be able to reward yourself for doing the right thing. Give yourself an incentive to keep working hard! My husband and I give ourselves a “going out” budget for little things we enjoy doing like movie dates. The amount that you should give yourself is best determined on a case by case basis, so determine the best amount for you!
7. The last step is to use the numbers to calculate if you are below or over budget. Based on that finding, you may need to adjust some things. Maybe you spend too much on cable, in that instance you may need to look into cheaper internet based streaming services. Maybe your phone bill is really high, you may need to downgrade or switch services. Maybe your car note is killing you, if you have been consistently paying on time for a while, you may be able to seek another loan at another credit union for a lower interest rate. Maybe you spend a lot of grocery shopping, read our blog post about How To Save Money on Food While Eating Healthy at the Same Time! Whatever, the case may be, it is important to be aware .
Let me know if you found anything on this list helpful. Did I leave anything out, help other by commenting below! Thanks so much for reading.