I have just went into a self directed think tank and figured out what I could do if I lived with only the basic necessities of life and saved the rest. I could potentially save $2000 a month starting in September when I get a pay raise! If I did that for 2 years thats an easy down payment on a house,
and I could probably save about $1000 a month when a house payment.
Thats exactly what one of my students would say, "Periodic Table: atomic numbers 56, 57."
P.S. Free random food for lunch is good for my budget.
Tuesday, April 22, 2008
Budgeting: Make it Fun!
For people who either have credit card debt or do not have an emergency fund (which is pretty much every 20 something), I think it is NECESSARY to live on a budget. Now, what you are probably thinking is that when you hear the word budget you probably cringe, but it does not have to be that way.
I think it is important to keep your budget simple and fun. For the next month, write down EVERY expense you have (including any savings or automatic savings plans). I would recommend putting your fixed expenses down in the beginning of the month, then simply write down anytime you buy food, eat, or miscellaneous expenses. On my cell phone whenever I buy anything, I simply write down the cost rounded to the nearest dollar than F for food, G for gas, and M for misc. I then add all of these expenses each week.
You can also use your credit card for all of your expenses. Whats good about this is you will get a statement for everything you buy, but what could be troubling is if you cannot pay for everything you bought at the end of the month.
I have made an excel spreadsheet when has categories for fixed and living expenses, and automatically updates so you know exactly how much you spend each month. Leave a comment or email me at lancekaminsky@gmail.com and Ill send you a blank budget for free.
Once you see where you are spending your money you can set realistic goals for how much you can spend on variable expenses like food.
I think it is important to keep your budget simple and fun. For the next month, write down EVERY expense you have (including any savings or automatic savings plans). I would recommend putting your fixed expenses down in the beginning of the month, then simply write down anytime you buy food, eat, or miscellaneous expenses. On my cell phone whenever I buy anything, I simply write down the cost rounded to the nearest dollar than F for food, G for gas, and M for misc. I then add all of these expenses each week.
You can also use your credit card for all of your expenses. Whats good about this is you will get a statement for everything you buy, but what could be troubling is if you cannot pay for everything you bought at the end of the month.
I have made an excel spreadsheet when has categories for fixed and living expenses, and automatically updates so you know exactly how much you spend each month. Leave a comment or email me at lancekaminsky@gmail.com and Ill send you a blank budget for free.
Once you see where you are spending your money you can set realistic goals for how much you can spend on variable expenses like food.
Subscribe to:
Posts (Atom)
