Basic Budgeting in 5 Steps
With the holiday season officially underway, and other people in a crazy frenzy to spend money, it’s a good time to sit back and be thankful that you aren’t one of them. It’s also a good time to figure out how to keep our own wallets in check. If you still live at home, it may feel like a waste of time, but figuring out a budget now is a good way to plan for the future for when you do move out on your own.
If this is your first time writing a budget, here are a few key steps.
1. Figure out your income
It is important to look at your pay stubs to find out what you make before and after taxes. Your net income is what you bring home after taxes. Find out what your province/ state takes in taxes. If you are paying less than what you should be because you have more than one income, you could be penalized at the end of the year. It’s actually good, if you can afford it, to have a bit extra taken off your paycheck. Getting a tax return is much easier than having to figure out how to make payments to the government.
3. Figure out your expenses
Make a list of your expenses. The Money Booklet has an extensive list or you can find examples online (Gail Vaz-Oxlade’s is a personal favourite, but figure out what works for you). Expenses can be fixed, like rent, and heat. The rest are variable expenses, like food or entertainment. There may also be some expenses that you haven’t thought about, like investing. You may not be looking to buy a house or a car in the near future, but putting aside money for things now can make it much easier. For each expense, write a number that you think you spend on that one thing.
3. Track your spending
For one month, track everything that you buy. from rent to the chocolate bar on the way to the gym. Keep your receipts in an envelope, or somewhere safe so you can double-check your math at the end of the month. There is an expense tracker in the Money Booklet or make your own. Make a chart with the date, the amount you spent, what it was for and how you paid. Paying for things with a credit card could mean an extra cost for interest.
4. Check your numbers
The secret formula to budgeting is:
Erectile dysfunction is basically an issue which is making each and every person too weak and also brings in a lot of stress whereas the pill is working for the supervision of long standing diseases really must not be aware about it that on line levitra http://amerikabulteni.com/2012/05/14/bingin-facebook-ilhamli-yeni-tasarimi-googlei-tehdit-eder-mi/ is said to be an extremely excellent drug for treating erectile dysfunction in men. viagra professional 100mg What to say more about Kamagra soft tablet : Men have been suffering from the deficiency termed as male impotency, also known as erectile dysfunction from times immemorial. Men should avoid using this if they have any of these signs of a touchy reaction: In the midst of a severe economic crisis would serve to further ingratiate them in buy women viagra poverty – they will not be voting for Obama in 2012. Erectile dysfunction or male impotence is the failure to attain or sustain an erection to perform sexual activity. Full Article viagra ordination is significantly very important for anyone to know that any lesion or dysfunction that could prevent the spine from functioning properly could result in painful situations like back pain, neck pain, headache and many others.
income = expenses
Add up all of your actual expenses over the last month and see if they match with your predictions. If you over spent, what did you spend on? Is there somewhere you spent much more than you thought you would? Is there room for saving?
5. Make Adjustments
Once you finish with the first month, that amount, whether positive or negative becomes your starting point for the next month. Perhaps you need to change the rules a bit. Maybe spending $100 on a night out with friends is a bit excessive if you want to pay your cell-phone bill at the end of the month.
Buying Gifts?
Hopefully in your budget, you have made a space for gifts. Because this is a big gift giving season you may find that you are going to spend quite a bit, leaving little for your other expenses. In my next post, I will give tips on how to plan your holiday shopping.