Creating A Budget For Financial Success

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Creating A Budget For Financial Success

Adjusting The Numbers For Your Financial Success

When you’re ready to take your money seriously. When you are ready to take action and get ahead the first step you must take is developing a budget for financial success. And as you follow this budget for financial success you will be able to accumulate more savings and investable income.

For our example we will be looking at how to divide or budget your net-income, what you bring home after taxes. As we look at this budget I realize this may be very difficult with your current financial situation. If this is the case then this should be looked at as a goal. A goal that you can work for and achieve.

Adjusting The Numbers For Financial Success

When you’re ready to take your money seriously. When you are ready to take action and get ahead the first step you must take is developing a budget for financial success. And as you follow this budget for financial success you will be able to accumulate more savings and investable income.

For our example we will be looking at how to divide or budget your net-income, what you bring home after taxes. As we look at this budget I realize this may be very difficult with your current financial situation. If this is the case then this should be looked at as a goal. A goal that you can work for and achieve.

Building And Budgeting For Financial Success

Housing – 25 percent or less. This includes HOA, Property Taxes along with Utilities and other housing fees.

Cars – 5 percent or less. This includes not just the monthly payment, but also insurance, gas, tolls, registration fees and maintenance.

Clothing – 5 percent or less. Refer to the frugality habit here: Invest in quality, not quantity

Vacations – 5 percent or less. You do not have to travel first-class to have some first-class vacations.

Entertainment – 10 percent or less. This category includes bars, restaurants, movies, music, books, gifts and so on.

Getting control of your spending is not an easy task, and it might challenge your vanity—many of the wealthy are not afraid to bargain shop or use coupons. Once smart spending becomes a daily habit, however, it gets much easier.

How Do The Numbers Breakdown If You Make $5,000.00 A Month?

When it comes to your housing expenses, your housing monthly expenses should not exceed 25% which is $1250.00 per month.
When it comes to your car or auto expenses using the 5% figure your auto expenses should not exceed $250.00 per month.
Clothing at 5% would equal the same $250.00 per month. And vacations would equal another $250.00 per month.
Allowing you an entertainment budget of $500.00 per month.
Now when you add the figures up you are living off of 1/2 your income leaving you the $2500.00 a month for savings and investing.

The 50/50 Budget Is A Sure Way Of Budgeting For Financial Success

This may seem a bit difficult or even impossible at first glance. If this budget looks like only a pipe dream then make this budget a financial goal for you to achieve. No doubt you will have to work on both your spending and your income, but your future you will thank you for all your hard work.

Building And Budgeting For Financial Success

Housing – 25 percent or less. This includes HOA, Property Taxes along with Utilities and other housing fees.

Cars – 5 percent or less. This includes not just the monthly payment, but also insurance, gas, tolls, registration fees and maintenance.

Clothing – 5 percent or less. Refer to the frugality habit here: Invest in quality, not quantity

Vacations – 5 percent or less. You do not have to travel first-class to have some first-class vacations.

Entertainment – 10 percent or less. This category includes bars, restaurants, movies, music, books, gifts and so on.

Getting control of your spending is not an easy task, and it might challenge your vanity—many of the wealthy are not afraid to bargain shop or use coupons. Once smart spending becomes a daily habit, however, it gets much easier.

How Do The Numbers Breakdown If You Make $5,000.00 A Month?

When it comes to your housing expenses, your housing monthly expenses should not exceed 25% which is $1250.00 per month.
When it comes to your car or auto expenses using the 5% figure your auto expenses should not exceed $250.00 per month.
Clothing at 5% would equal the same $250.00 per month. And vacations would equal another $250.00 per month.
Allowing you an entertainment budget of $500.00 per month.
Now when you add the figures up you are living off of 1/2 your income leaving you the $2500.00 a month for savings and investing.

The 50/50 Budget Is A Sure Way Of Budgeting For Financial Success

This may seem a bit difficult or even impossible at first glance. If this budget looks like only a pipe dream then make this budget a financial goal for you to achieve. No doubt you will have to work on both your spending and your income, but your future you will thank you for all your hard work.