guidelines are useful tools, but general advice personal finance may eventually end up hurting your wallet.
Your budget strategy should be tailored to your specific monetary goals.
as 50/30/20 Tips can help you get started, but if you live in an expensive city like New York or San Francisco and 50% of your monthly budget goes to housing alone?
This is why it is important to create your own limits.
How to create your own financial limits
- How are you doing?
Take a pen and a piece of paper. Now, write down the monthly income that hits your account - answer three questions about your income.?
Have you already paid taxes on it
has been a contribution to retirement deducted from it?
Have you assigned a percentage of it in savings? - Determine your next step.
If you answered yes to all three:
Congrats Automation savings before the money arrives in your checking account. You are ahead of the pack.
The next step is to deduct your fixed monthly expenses from your monthly income. Set spending often include: rent or mortgage payment, cell phone bill, utilities, public transport costs (estimate gas payments), insurance and debt payments
If you answered yes to question one. and two, not three:
Deduct your expenses paid from your monthly income. Set spending often include: rent or mortgage payment, cell phone bill, utilities, public transport costs (estimate gas payments), insurance and debt payments
Once you subtract your fixed expenses, you can clearly identify. how much you can afford to save each month.
Define a percentage, then start immediately contribute that amount into savings each paycheck.
Say you have $ 1,500 in your account after deduction of taxes and fixed costs. You can easily get the $ 1,000 each month, so you make it a habit to $ 500 (about 33%) in savings.
If you answered yes to question one, but not two or three
your employer offers a 401 (k) or 403 (b) retirement plan with a match? If so, contact HR tomorrow and set up a contribution which is at least enough to get the company match.
Otherwise, start saving money every month to fund an IRA for your retirement. In 2015, you can contribute up to $ 5,500 depending on your income level. That's $ 458 per month if you want to fully fund your IRA
Deduct your expenses paid from your monthly income
Set expenditures often include: .. The rent or mortgage payment, cell phone bill, utilities, public transport costs (estimate gas payments), insurance and debt payments.
The remaining amount can be used to make savings and to pay for food, entertainment, and other financial goals.
Set an amount you want to save each month - over your IRA contributions -. to create an emergency fund or savings cushion
immediately put that amount in a savings account where the money comes into your checking account or better yet, set it up so it is automatically deferred of your salary in savings
If you answered no to all three questions :.
do not waste time trying to outsmart Uncle Sam. The IRS will come to you, whatever happens, make sure that you have enough saved to pay taxes.
You can calculate how much you owe in taxes with this tool.
Set a percentage of your monthly income to go towards taxes, so you know you will have saved enough. Then deduct your monthly fixed expenses, such as rent or mortgage payment, cell phone bill, utilities, public transport costs (estimate gas payments), insurance and debt payments.
Once you have saved enough to tax and to keep a roof over your head, put money each month into an IRA contribution for retirement or set up a (k) deduction 401 with your employer.
Then, set the amount you can afford to save each month. This emergency fund is important - especially if you have not a tax refund to pad your savings account
Whatever you have answered these three questions :.
The remaining amount can be used to buy food, spend on entertainment, and to the achievement of financial goals.
You can be aggressive with savings or payment of debt management objectives or take a part of your monthly expenses and allocate elsewhere.
Divide the number by four and see how much you have to spend a week. You can just keep listening to your finances and spend without a strict budget as you do not exceed your monthly allowance.
Determine budgeting method that works best for you and keeps you out of debt.
stick to these limits
Creating a limit weekly expenses can help you meet budgets better than watching a 30 day period of time and try not too spend.
credit cards make it easy to not just overspend, but forget how much was spent before the project is
to fight against this problem, you can take one of two ways:. food or cash to pay your credit cards during the month.
cash plans are a way to stick to strict limits. You determine how much you can afford to spend every week and take that amount in cash.
Only then spend cash instead of a card. If you must use a credit card and remove that amount of money out of your wallet and set it aside for use next week.
Porter money can not appeal to some, in this case, it is important to pay your credit card as you will during the month.
Select a day to connect to your credit card portals and pay them all. This way, your bank account will accurately reflect the amount of money you have to spend real.
There are many ways to budget money, but if you fit a specific plan for your income and
0 Komentar