#COACHDANYELL #FINDYOURPOSITIVITYPODCAST #COACHING #HEALING #SELFAWARENESS #FINANCE #DEBT #FINANCIALFREEDOM #MANAGINGDEBT #BUDGETING #FINANCIAL #BUDGET #INFLATION
As we deal with inflation, rising gas prices, and real estate increasing, we must work towards managing our wealth better. Once you understand the amount of income being received and how you distribute your income, it is easier to prepare a budget and modify when needed. Keep reading for five helpful tips on creating a successful budget. Let’s discuss…
First, when working on a budget, you should become aware with your net income. Gross consists of your paycheck pre-tax, but not your take home pay. Net income consists of post-tax, take home pay. After 401K, FSA, HAS, or insurance has been taken out of your paycheck, the net is the remainder. Once you understand how much income is being received each month, you can work towards breaking down this paycheck even farther.
Second, after discovering your net income, then you need to establish your cost of living. When creating your budget, break down your monthly expenses by categories to easily list and keep track. This encompasses rent, rental insurance, home utilities, home expenses, transportation, household insurance, credit cards, family expenses, and personal care. This will break down your immediate needs and extracurricular expenses.
Third, after preparing the list above, you will be able to establish your debt and monthly payments. Can you afford to pay more towards your debt and lessen accruing interest? Are you working to pay off debt quicker? Understand your debt and make sure you are making the required payments each month. This is considered a priority.
Fourth, understand your priorities versus your wants. Rent or mortgage and insurance is considered priority compared to personal care such as, hair, makeup, and gym. As you prepare the budget, list higher priorities first and least priorities at the end. Working through each item, you may be able to decipher which areas you can afford to spend more or less.
Finally, know how much you can afford to save each paycheck. You should work towards putting a portion of your paycheck aside for a rainy-day fund. This will be helpful in case of emergency repairs or out of pocket expense that you were not expecting. A good rule of thumb is to move 50 percent of your paycheck to savings, however, this may not be the best case for every individual. 2 to 10 percent is a great starting point for savings.
This is a technique that I use for current clients to prepare a budget, which you can always modify when needed. Be sure to check out the #FindYourPositivtyPodcast for more helpful tips for finances. Be consistent and do not give up!
Feel free to reach out for coaching services and products. Sending everyone love, light, and positivity!
Comentários