“Run Your Own Race”
No matter what your situation, you have to begin managing your money NOW and doing it on your own terms. Not everybody else’s way will work perfectly for you, but you HAVE to at least find a way that works. That might take a little trial and error, but it must be done. You don’t wait until you get that next job or your tax refund check comes in the mail. You have to begin taking small steps where you are if you want to have any sort of Financial Freedom for the future. So what do you need to begin?
The best way to start is by putting together a BUDGET. There is a great example below. You can get this from Microsoft Excel, and it allows to personalize and track your income and expenses.
First, calculate how much income you receive, and then list all the bills you have to pay. Try and budget in the fun things you plan on doing (going to the movies, eating out at a restaurant, going to a concert, etc.) If you can set money aside for fun activities, you are more likely to stick with your budget and not get overwhelmed by your debt or expenses.
After you complete your budget, you have the hardest part of the entire process ahead of you….STICKING TO IT. You may think this is easy, but as soon as Thursday night rolls around and your group of friends want to go downtown and party, your budget goes out the window….and then you are back at square one….which for a lot of people is a high interest credit card bill that looks like it will never be paid off.
The final part to budgeting is analyzing what your are spending your money on and making a determination if you can cut out certain expenses in order to save More money. Can you get by without cable, so that you can save an extra $50-$100? Can you switch cell phone carriers, so that you have a lesser monthly expense? Do you really need that Netflix account? If you want to start saving, it takes sacrifices. What are you willing to give up Today so that you can have MORE in the future?
I challenge you to put together your budget this week and determine how much money you are comfortable saving each month. Then I will show you what you can do with that savings.
That’s all on budgeting for now…please post a comment if you have any specific questions, and I will be happy to provide more detail.
| Monthly Home Budget | |||||||
| September 24, 2013 | |||||||
| Summary | |||||||
| Totals |
Actual |
Budgeted |
Over/Under |
||||
| Income |
3,750.00 |
3,750.00 |
at budget |
||||
| Expenses |
3,267.45 |
3,071.88 |
195.57 over |
||||
| Income less Expenses |
482.55 |
678.12 |
195.57 over |
||||
| Income | |||||||
| Income Source |
Actual |
Budgeted |
Over/Under |
Notes |
|||
| Salary 1 |
3,750.00 |
3,750.00 |
at budget |
||||
| Salary 2 |
at budget |
||||||
| Investment |
at budget |
||||||
| Stocks and bonds |
at budget |
||||||
| Other |
at budget |
||||||
| Total income |
3,750.00 |
3,750.00 |
at budget |
||||
| Expenses | |||||||
| Withholdings |
Actual |
Budgeted |
Over/Under |
Notes |
|||
| Federal income tax |
105.00 |
105.00 |
at budget |
||||
| State income tax |
0.00 |
0.00 |
at budget |
||||
| FICA |
286.88 |
286.88 |
at budget |
||||
| Medical |
100.00 |
100.00 |
at budget |
||||
| Dental |
125.00 |
50.00 |
75.00 over |
||||
| Other |
at budget |
||||||
| Total withholdings |
616.88 |
541.88 |
75.00 over |
||||
| Percent of expenses |
18.88% |
17.64% |
|||||
| Finance Payments |
Actual |
Budgeted |
Over/Under |
Notes |
|||
| Credit card 1 |
77.50 |
50.00 |
27.50 over |
||||
| Credit card 2 |
at budget |
||||||
| Credit card 3 |
at budget |
||||||
| Credit card 4 |
at budget |
||||||
| Student loan |
at budget |
||||||
| Auto loan |
275.00 |
275.00 |
at budget |
||||
| Home mortgage |
1,240.00 |
1,240.00 |
at budget |
||||
| Personal loan |
at budget |
||||||
| Total finance payments |
1,592.50 |
1,565.00 |
27.50 over |
||||
| Percent of expenses |
48.74% |
50.95% |
|||||
| Fixed Expenses |
Actual |
Budgeted |
Over/Under |
Notes |
|||
| Property taxes |
65.00 |
65.00 |
at budget |
||||
| Other taxes |
at budget |
||||||
| Charitable donations |
at budget |
||||||
| Auto insurance |
125.00 |
125.00 |
at budget |
||||
| Home insurance |
125.00 |
100.00 |
25.00 over |
||||
| Life insurance |
25.00 |
25.00 |
at budget |
||||
| Medical insurance |
at budget |
||||||
| Cable TV |
50.00 |
25.00 |
25.00 over |
||||
| Telephone |
66.98 |
50.00 |
16.98 over |
||||
| Utilities |
125.10 |
150.00 |
24.90 under |
||||
| Total fixed expenses |
582.08 |
540.00 |
42.08 over |
||||
| Percent of expenses |
17.81% |
17.58% |
|||||
| Variable Expenses |
Actual |
Budgeted |
Over/Under |
Notes |
|||
| Household |
15.00 |
50.00 |
35.00 under |
||||
| Groceries |
225.00 |
200.00 |
25.00 over |
||||
| Auto upkeep and gas |
68.25 |
50.00 |
18.25 over |
||||
| Other travel expenses |
at budget |
||||||
| Furniture |
at budget |
||||||
| Clothing |
0.00 |
50.00 |
50.00 under |
||||
| School |
at budget |
||||||
| Medical/prescriptions |
at budget |
||||||
| Entertainment |
112.50 |
75.00 |
37.50 over |
||||
| Memberships |
at budget |
||||||
| Dining out |
55.24 |
0.00 |
55.24 over |
||||
| Gifts |
at budget |
||||||
| Vacation |
at budget |
||||||
| Pet care |
at budget |
||||||
| Other |
at budget |
||||||
| Total variable expenses |
475.99 |
425.00 |
50.99 over |
||||
| Percent of expenses |
14.57% |
13.84% |
|||||
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