Isabel Leverrier October 6, 2020 Budget
There are always going to be unexpected bills, if your car breaks down or pet needs to be taken to the vet. These are problematic to accurately account for so it might be easier to set aside a contingency amount each month for unplanned expenses. Next step in the budget is to list all of your income. Look at recent payslips to get an accurate figure for wages and remember to include any benefits you receive, such as Child Tax Credit.
Transport is another issue to consider. Whilst many people simply would not consider losing their car completely, it is certainly worth thinking about using it a whole lot less. The car may be useful for the monthly shop, but for shorter trips it could be better to walk or take the bus instead.
The financial planner will help you to determine which payments require regular payments and to build up reserves for unexpected payments. The regular payments include; rent payments, grocery purchases, tuition payments, credit card bills and general upkeep expenditures. It is wise to note that everyone has varied financial needs, and you should, therefore, structure your budget to include all your personal expenditures. Hospital bills are one of the payments which are unexpected because people do not plan to fall ill. Once you have calculated your regular expenditure, you can create a reserve amount to cater for unforeseen payment requirements.
To make this exercise easier, ask for receipts for each purchase you make. In the interim, we should keep our receipts in envelopes labeled for each budget category. Then, take time at least once each week to review those receipts and tabulate the totals for each category. After two or three months, you have much more information to work with and are better able to find trends in your spending habits. Then, it will be easier to make the necessary adjustments so that your budget accurately reflects your spending lifestyle.
As far as money allotted for paying down debt like credit cards and student loans, you can shave a little off of savings until the balances are paid down or paid off completely. It is important with credit card debt to pay more than the minimum amount due, otherwise you are paying mostly interest and very little of your balance. Student loans however can be paid off in minimum payments without costing you enormous interest rates.
A proper calculator for a budget should include a slider view and input field view in order to give the user options in calculating their financial resources. Slider formats are great for making a quick calculation while minimizing the amount of typing needed. Input fields, however, are more accurate and tend to be used when exact calculations are necessary in determining a budget.