The Budget Talk – Part Two
posted on Nov 15, 2019 | 311 likes
Budget Thy Income
Let's get something straight before we proceed. Income is the take-home pay that you have after taxes, insurance etc.
Making a budget and sticking to it is important in having a strong financial future. You become healthy - Financially.
When you create a budget, two things happen:
· You take control of your life
· Your stress level diminishes
Being financially stable is one - if not the only - reason why you have to leave the comfort of your bed to work every day. Now imagine doing that every day of your life and not having an idea of how your earnings are faring in your pocket, sucks right?
There is no easy way to creating a budget or a singular method to it but there is a formula which can be adhered to:
Budget = 50/30/20
This formula simply states that you should devote 50% of your income to NEEDS, important needs such as;
· Gas, fuel etc
And basically, other things that are necessary for survival.
Then put the 30% towards WANTS such as;
· A new shoe, bag, shirt etc
· The cost of upgrades such as choosing a Benz instead of a Toyota
· Movie night with boo or bae at the cinema - there's no crime going alone too.
The last 20% is SAVED in an emergency fund, another investment account, or used to make extra payment on outstanding debt. The major value of the 20% is to save for rainy days.
The main goal of creating or having a budget is for your monthly income to last. To be financially stable before your next payday, consider the following:
1. Pay your monthly bills
2. Set aside money you'll need for weekly and day-to-day expenses
3. Put money into savings
4. Set aside money for larger expenses - car repairs
5. Set aside money for your major future goals
Can I really?
Creating and sticking to a budget can be quite tricky. It's like trying to keep fit (jogging) or quitting a bad habit, you will need effort to make it happen.
Motivation is needed to conform to a created budget. Probably with the knowledge that you might go broke or knowing at the end of the month, your health never dwindled.
It is possible your income might not help with the budget you would like to create. There are strategies to increasing your income which includes getting a higher paying job, having a side hustle or finding a roommate to help reduce rent fee.
You can also cut expenses by eliminating impulse buys.
Building a sustainable financial life that can handle budgeting properly demands conscious self-discipline and learning.
You can talk to a financial expert to help you plan your way into a well-rounded financial life where budgeting is no longer a pain in the ass.
Good news is, you do not have to spend a dime to get top notch financial advice from professionals who actually practice what they teach. In fact, our professional finance consultants at Page Financials are ready to assist you in coming up to speed with proper budgeting skills.
To reach us is simple, and the service is FREE. Visit our website at www.pagefinancials.com or send us an email at firstname.lastname@example.org. Our phone lines are also reachable 24/7 everyday, we will like to discuss your financial roadmap to success. Do reach out.