Hi, there. I’m going to talk about a doable 2008 budget and you notice when the B word comes up somebody is missing from this to all. Yeah, he is afraid to bring up or mention budget with just so he left me to do it alone, but we can do this really easy together.
Let me give you a couple of do’s and don’ts. You can figure it out. No heartbeat. Number
one, what money do you bring home each paycheck? That’s your net. After the government gotten through with you when your employers taken them off for whatever benefit you might have added. Whatever, your net pay, how much is it? You know what that is if you don’t you’ll lose cash in those checks for you.
Once you figured out your net income. Now you want to look through your budget. Excuse me, I don’t want to use the B word. Now you want to look through your spending to see what are your fixed expenses. They are same every single month, your rent or mortgage, taxes, insurance and all of those up subtracted from your net take home pay.
Now we have the leftovers but we may not handle that leftover because we still have to eat, put lights on, pay a telephone bill, maybe buy some clothes, commute, buy lunches, whatever, whatever. You want to give your best guess estimate if you don’t want to spend that whole month trying to track where you’ll spend the rest of your money in the movies, the restaurant and stuff.
Guess or figure out as closely as you can how much of those non-fixed expenses you have. There unusually is where we all go underwater. It’s that every flip in the credit card out of the movie theater and the grocery store and at the restaurant, and we don’t really know how much we’re spending every month.
Compare all of these expenses that you’ve totaled up to your income. Are you still in the black? Get out a little notebook, track all your expenses. If you find that you can’t quite figure out how much you’re spending every month and all these little ancillary things and keep track for one month. You bought a newspaper, write it down. Just a map, you don’t really have to chronicle what it was for. Movie tickets write it down. Total that up, that will give you a true non-fixed expensive that you kind of to tend to spend every single month. Find those expenditures. That’s where the leak is in your budget. That’s where the money goes out that’s why you don’t have enough left at the end of the month to save.
After a month, try it with cutting back on this, cutting back on that, putting some into savings. If you find that you’re giving to the savings habit which is very, very catchy then you can tweak and maybe take a little bit more out of the non-fixed expenses and add a little more to savings.
That’s all it is to get a budget together. You just have to know where you’re spending the money. Once you figure out where the money goes, some of that you can control some of that obviously you can’t you’ll be on the road to saving, and a much healthier financial 2008.
Good luck.
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