BUDGETING THAT WORKS!
Budgeting can be tough but it works. When most individuals get paid most of their money is owed to bills. Budgeting isn’t hard it just takes sacrifice. I will show you how to create what I like to call my life budget. A life budget is a budget that covers every area in your life. Ok! Let’s grab a pen and a sheet of paper we’re going to cover 7 categories to help with budgeting.
College (if applicable)
HOUSE – All monthly expenses, group into this category.
PERSONAL – All personal expenses, group into this category.
Example of personal expenses: eating out, gas and groceries.
SAVINGS – Start with $150.00 for this category. The savings number can be adjusted If you have more or less funds available at the end.
RETIREMENT – Start with $150.00 per person. If you are single, $150.00 and if you are married, $300.00.
COLLEGE – For those who plan to attend college, allocate $100.00, $85.00 per child over the age of 10 and $50.00 for every child under 10 year old.
VACATION – Start saving $150.00 per month for this category. For large families double this number.
ESCALATION FUND – Based on your surplus (the amount you have left over) allocate $200.00 or more, this money can be used to pay off debt faster.
Sum up your calculations and post your results, thoughts, questions or concerns.
Tune in next month for Part 2 of Budgeting that works.
Written by La Shawn C.