Welcome to Karmen’s Korner! If you are a new reader, be sure to follow my blog to get notifications on future posts. If you are a returning reader, then welcome back. This week, we are discussing budgeting. With tax season on our heels, now is the time to start budgeting and building financial stability. For those of you getting that stimulus back, stick it in that savings and don’t think twice about it. Creating and maintaining a budget can be accomplished very easily.
How to Build A Budget
Building a budget can be done easily with a few easy steps:
- Calculate your monthly income
- Figure up your subscription expenses
- Determine your other expenses
- Give yourself a limit on splurges
- Only keep enough in your account to cover emergencies
After you have determined your monthly income and critical expenses, you can determine what limit you want to give yourself on splurges, such as eating out and shopping. After that is determined, you can determine how much goes in your savings. A good rule to go by when determining how much to put away, only keep out as much as you will need if you need an extra tank of gas or if something comes out of your account you might forget about.
My Budget Plan
My necessary expenses include gas, Hulu, Apple Music, Google storage, iCloud storage, and my blog plan. These are things that I can’t opt out of unless I cancel them, and I know to budget for them. I then calculate how many times I might eat out that month and how much I might need to set aside for things like my dog’s groomer and getting my hair and nails done. After all of this is calculated, I keep at least $100 in my checking, so the rest goes to savings.
Forcing Yourself to Make Cuts
Making cuts and setting limits is very difficult and takes some real inner strength. Track one month’s worth of expenses and divide them into food, shopping, entertainment, and gas. At the end of the month tally up the totals and see how much extra money you spent and see how much you would have in your savings right now. This can help you see where you can make cuts.
Monthly Savings Goals
An easy way to make cuts is by creating monthly challenges like, “no online shopping this month” or “only $100 on food this month.” This creates a challenge for yourself and also results in saving money. I like to do these because I usually stick with them easier by telling myself that “it’s just this month.”
Let me know in the comments below your thoughts on this week’s blog post and what you would like to limit! Be sure to click the like button below and visit the links below to follow my blog via email or WordPress account to get notifications on future posts as well as to view other posts I have written. Also, be sure to check out the video linked below to see what a day in my life looks like during tax season at a tax firm.
Thanks for reading!