As I mentioned in my Resolutions Update, I have had a budget for years. This is something that a lot of people can struggle with, so I wanted to share how I developed my budget plan. This is a very personal thing and what works for one may not work for others, but here is my advice.

Monthly Income

The first step in developing a budget is figuring out what you have to spend. A lot us are paid hourly and may work varying hours and your income can fluctuate. My advice is to always assume on the low end, so you know you will be paid at least X amount of dollars.

For this example we will say your monthly income is: $1,500

Fixed Expenses

These are the bills you pay each month that do not change in price: such as rent, car payment, insurance, etc.

For this example:

Car Payment: $400

Rent: $500

Insurance: $80

Total: $980

Remaining check: $520

Flexible Expenses

These are the expenses that can change in price from month to month, in this case I always plan for the bill to be more than expected. This includes utilities and credit card payments.

Utilities: $150

Credit Card: $75

Total: $225

Remaining check: $295

Discretionary Expenses

Discretionary are expenses that you choose to have and are in complete control of the cost such as cable, internet, cell phone, and groceries.

Groceries: $100

Cell phone: $75

Internet: $50

Total: $225

Remaining check: $70
 

I hope that this helped you in some way, I normally create a spreadsheet so that it does all of the math for me. If you would like to see a more in depth post about how I create a budget, let me know in the comments! 

Thanks for reading, guys! I hope you enjoyed this post, don’t forget to like it and follow before you leave. Look out for new content every Monday, Wednesday, and Friday! 

– Mackenzie

Advertisements