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Lola F.
@lolaf237
Debt payments
Debt payments may look confusing when you add it to the savings column. But the easiest way to build up a savings balance is not to have your money go toward debt. Once your debt is paid off, you can increase the savings.
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Summer S.
@summers338
Your Complete Guide to Creating a Monthly Budget in 2020
A Monthly Budget For Your Money
No matter how little or how much money you earn, creating a monthly budget is one of the most important aspects of managing your finances. What gets measured gets managed.
...
The Envelope System
The Envelope system is a way to track your variable expenses like food, entertainment, and drinks.
This method, preferably used weekly, allocates a certain amount in each category in labeled envelopes (food, drinks, movies, etc.). Once the envelope is empty, you are done spending in that category.
How to Create a Good Budget
The principles that make a good budget, something you can stick to:
- Being Realistic: Being too strict is a recipe for failure.
- Making Adjustments: A budget is not set in stone, but a fluid thing.
- A Team Sport: If you live with a partner or spouse, you have to agree mutually on how to budget the financials.
- Expect the Unexpected: Keep an emergency fund, ideally 3-6 months of necessary expenses.
- Budgeting the Expected: Certain upcoming expenses need to be budgeted in advance, like property tax, holiday shopping, etc.
Vera
@vera_18
Conscious Spending Plan: Budget by Looking Into the Future
Traditional Budgeting is Up In Smoke
A person who has a conscious spending plan is all about having positive spending habits and not banning yourself from spending altogether.
If you've ever tried to put y...
Conscious Spending Plan
There are three steps to creating a conscious spending plan.
- Categorize your current spending
- Set up an automated system
- Keep track of your spending
Budgeting is about knowing that you're about to spend on something that matters to you. It shouldn't deprive you of having fun altogether.
Categorizing Your Current Spending
It's important to have an overview of your money and where it's being spent. It's possible to fit your expenses into these four categories:
- Fixed Costs (Rent, Bills, Loans)
- Important Investments (401k, Roth IRA)
- Financial Goals (Home Payments, Vacation Fund)
- Guilt-free Expenses (Dining out, Happy hour)
When you break down your current spending even further, you will be able to keep yourself sustained with this method because it doesn't take away the fun.
Summer S.
@summers338
5 Simple Steps to Creating a Budget That Actually Works
Budgeting = creating a plan to spend your money
Budgeting is simply balancing your expenses with your income.
It's a plan for the coordination of resources and expenditures. When you budget your money, there’s a desir...
How to create a budget
- Gather Some Financial Information: gather a detailed list of your income and expenses.
- Select a Budgeting Method: figure out how you’ll budget your money to meet your most pressing financial goals.
- Create Your Budget: tally up all your expenses and income to see where you stand and allocate expenses.
- Execute Your Plan: you can use a notebook, pen and paper, a spreadsheet or an online software.
- Reward Yourself: you can work a small percentage into your budget to treat yourself each month.
The 70:20:10 budgeting method
This method suggests that you allocate 70 percent of your income to expenses, 20 percent to savings, and the remaining 10 percent to debt.
70:20:10 may work for someone with a healthy emergency fund and minimal debt.
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