In uncertain times, it’s important to manage your own personal budget. Doing a budget is simply telling your money where to go and prioritizing it. It takes time to set up and manage a budget. Here are some simple tips:
Write down your total income for the month.
This is your total take-home (after-tax) pay for both you and if you're married, your spouse. Your income should include every dollar coming in —full-time jobs, part-time jobs, freelance pay, unemployment, and any other ongoing source of income.
List all your expenses.
Think about your regular bills (mortgage, electricity, water, etc.) and means of survival as your main priority bills. After that, total your other costs, like gas, take-out (avg monthly), Netflix and other streaming accounts and subscriptions. Every dollar you spend should be accounted for.
Subtract expenses from income to start a budget.
Once you understand your income to expenses, it’s easy to identify how much you should be saving a month. Set up a budget for yourself on how much you want to save once all expenses are listed out. Tracking your expenses may help you understand where you can cut costs. Perhaps you realize you have a bunch of subscription accounts you don’t use.
Track your expenses throughout the month.
Once you start the budget, you'll still need to stay on top of your expenses. Keep an excel file or document you can use monthly to ensure you aren’t overspending your budget.
We hope these tips serve you and get you on the way to start your own monthly budget. Stay well – the team at Mutual Title Agency.