Budget Basics

Do you have a written household budget?

Do you know budget basics?

Do you need some budget tips?

Do you need to save your money?

Here’s your weekly challenge: get your budget out of your head & onto paper! It’s simple, just fill out this budget guide.

Here’s how…just start filling in the blanks! (keep in mind that some income & expenses may not apply to you…e.g. alimony!)

Step 1: Start with total monthly income:

• Salary

• Spouses salary

• Child support

• Alimony

• Other

Step 2: Next, list your monthly expenses:

• Mortgage/rent

• Insurance (auto, home, life, health, disability,dental, long term care)

• Car payments

• Child care

• Clothes

• Memberships (country club, pool or fitness center)

• Lessons (piano, dance, etc.)

• Cleaning service

• Lawn service

• Pool service

• Loans (home equity, student, credit cards)

• Savings (college, retirement, vacation, emergency)

Some expenses tend to fluctuate, so calculate the average monthly expenditure:

• water / sewer

• electricity

• gas (not for your car, but your home)

• Internet

• Cell Phone

• Phone

• Cable or Satellite

Now the fun part…simply subtract your total monthly expenses from your total monthly income.

Take a long, hard look at this number because that’s the amount you should be living on every month…food, fun, gas, dry cleaner & all those everyday expenses! Please keep in mind that the average family of four spends $800 – $1000 per month just on food!

Let’s suppose you have $2000 left to spend. Set aside 30% ($600 per month) for expenses that I refer to as “Oh No” expenses…car repairs, plumber, doctor visit, big gifts, etc. These expenses should not come from your “emergency” savings because these are not emergencies…they are just part of life, & they will come up every month! If you don’t budget for them, you’ll end up going into debt to take care of these expenses.

After you set aside $600 for “oh no” expenses, you’ll have $1400 left or $350 per week…known as “weekly allowance”!

Put your $350 weekly allowance in your wallet…spend wisely because when it’s gone, it’s gone!

Let’s get this budget diet started right now, so you can SAVE YOUR MONEY!

Next Monday The Budget Diet girl is going to put you on a CRASH DIET for your wallet!