Budget 101

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Budget 101

Divide up after-tax income and allocate if you can to the following

50% essentials or needs
30% non-essentials or wants
20% future, savings, buffer or rainy-day

If possible have a monthly transfer to a non-essentials account and a savings account so that the money left is just for bills and essentials.

Identify your income and expenses

Check that you are paying the correct tax.
Work out what is your average income and what are your expenses.
Rank your essentials by cost and essential/non-essential
Go thru the list to determine if you can get a better deal or can remove them.

Planning

Plan your working month and year, set up your direct debits just after you would be credited with your salary so that you have this money available.
Remove any items that you can live without or do not bring me closer to my goal.

Have a record of when you get paid and when your bills leave your bank account so that you can be in the knowledge that the major essentials have been paid and you just have the daily/weekly essentials to deal with.

Design your budget

Balance your budget for emergencies


Put a budget into action

Have i allocated money for essentials, debt payments, and unexpected purchases?

Seasonal Expenses

Budget for Xmas, Easter, and any holidays.
Set money aside for annual membership, new shoes or if something fails to work

Look Ahead

Adjust the spending plan over time.
Avoid debt at all costs.
If you have debt pay off the highest interest rate first 
Contact debt company is you are struggling

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