Gross income, which is the amount you made before taxes were taken out, will also be printed on your pay stubs. Don’t use your gross monthly income for this. Disregard overtime pay since that usually varies according to circumstances. [2] X Research source
Mortgage, rent, and/or property taxes Utility bills (cable, internet, cell, electricity, water, gas, etc. ) Car payment/vehicle insurance Health insurance Student loan payments To calculate the average for a fluctuating expense, look at your bills from the past year, add up the monthly amounts due, and divide that total by 12. Use that average to create your budget.
Household and grocery items Clothing and shoes Personal hygiene items Gasoline, parking, and transportation costs School supplies
Entertainment like movies, concerts, books, magazines, and video/music streaming services Recreation like hobbies/hobby supplies, travel, video games, and amusement parks Gym membership Dining out, snacks, and candy Gifts
For example, if your expense total is $200 less than your income total, that means you have an extra $200 each month to put into savings or towards a long-term goal like buying a car. If your expense total is $200 more than your income total each month, you may be struggling and unable to pay some of your bills. To get back on track, start by deciding which discretionary expenses you can get rid of.
For example, if your monthly fixed expenses are $800 and you get paid twice a month, put aside $400 from each paycheck to cover the fixed expenses. Any money leftover can go towards groceries, gas, and clothes. If you get paid weekly, be sure to take a little out of each check to cover your monthly expenses.
Try to save at least 10% of your income each month so that you have a financial cushion for unexpected expenses, retirement, or emergencies. [9] X Research source Open a savings account to keep this money separate from your spending money.
The amount you spend on eating out, your morning Starbucks fix, and cinema trips can really add up. For example, spending $2. 50 every morning on a cup of coffee might not seem like a big deal, but that comes out to $900 per year! Think about what you could do with $900.
For example, if you set aside $100 for groceries each month but routinely spend a little more than that, up your monthly grocery budget to $150 or $200. Then, see which non-essential expenses you can remove or reduce to balance out the grocery expenses. Be sure to account for income changes, too. For example, if you get a promotion at work, you can increase discretionary spending or up your savings goals. If your work hours are reduced, you may need to cut some discretionary expenses, like your gym membership, until you get back on your feet.
Check out this free budget worksheet: https://www. consumer. gov/sites/www. consumer. gov/files/pdf-1020-make-budget-worksheet_form. pdf Another free option: https://media. gcflearnfree. org/ctassets/topics/27/mb_budget_worksheet. pdf
128-bit SSL encryption Secure connection using SSL certificates Security scanning with VeriSign Firewall protection Multi-factor authentication Quicken, Mint, and YNAB all offer easy to use budgeting services.
Check out this free template to help you track expenses: https://fyi. extension. wisc. edu/toughtimes/files/2011/02/Personal_Spending_Plan1. xls Another option: https://fyi. extension. wisc. edu/toughtimes/files/2011/02/Monthly_Budget-ppay1. xls
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Use the information to make budget adjustments for the next month. Don’t forget to look for errors, especially if you’re budgeting with paper and a pen. Consider using a budget app or software to automate your budget and reduce errors.
