Step 2: Set aside money for savings and investment The point of doing this calculation is to set aside a portion of your income to cover these expenses. While there may be some variation such as in your electricity bill from month to month or season to season, in general, you know that you’re going to have to pay it each month. Some of these include rent or a mortgage payment, electricity, water, cell phone bill, health insurance, car payments, and childcare. The first thing to do is tally up all your fixed expenses.įixed expenses are ones that remain the same every month. There has to be some math involved in the creation of every budget. This means that I may receive compensation when you click on a product link or purchase an item linked on this site. The type of budget I’m writing about today is the easiest to follow! I’ve even heard it called “the anti-budget” budget.ĭisclosure: This post contains affiliate links. There are some people out there who love to budget and it works for them. It can be flexible and easy to follow, which is so important because how many of us have started a budget only to ditch it after a few months? *Raises hand* The good thing is that a budget doesn’t have to be any of those things above. They don’t allow for any fun.Īnd how are you supposed to know what will come up in the future? Your income and expenses may fluctuate. They’re restrictive, inflexible, complicated, time-consuming, and difficult to keep. I know you hear it at the start of every year: you need a budget! The nagging gets tiring, even if you know or think you need one.īudgets have a bad connotation. The Easiest Budget You’ll Ever Follow & That Actually Works!
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