This month, you’re going to organize your finances. Hold onto every receipt, bill, statement, pay stub, and invoice you produce throughout the month. Sometime during the last week of the month, sit down with all of your paperwork and start crunching the numbers. When you’re through, you should have all of these questions answered:
How much is my net monthly income? Consider all types such as payroll, child support, alimony, investments, etc.
How much are my monthly fixed expenses? Fixed expenses are those that you can be sure of every month such as mortgage or rent, loans, insurance, subscriptions, etc.
How much are my monthly non-fixed expenses? Non-fixed expenses are variable expenses that can fluctuate from month-to-month such as groceries, gas, medical bills, entertainment, etc.
Work on creating a budget when you have all the numbers in front of you. Designate the necessary funds for your fixed expenses. Then, with the remaining money, determine how much you will spend in each non-fixed expense category. Put your minimum debt payments in the fixed-expenses category, with another category for extra debt payments in your column of non-fixed expenses.
Need help getting started? Try using our spending plan document to organize your budget and our online budget calculator from Banzai. You can also sit down with our free, on-staff financial counselor. Call today at 330-364-8874 and ask for Katy Steinebrey.
Want more budgeting information? Check out our interactive library through Banzai by clicking here.
Available Articles in the Financial Freedom Series:
Step 1: Take Stock of Your Debt
Step 2: Don’t Dig Yourself Deeper
Step 3: Negotiate a Lower APR
Step 4: Create an Emergency Fund
Step 5: Create a Budget
Step 6: Trim Expenses
Step 7: Create A Debt Snowball
Step 8: Boost Your Income
Step 9: Put All Windfalls in Your Snowball
Step 10: Make It Automatic
Step 11: Track Your Progress
Step 12: Celebrate!