Stephanie Geddes October 11, 2020 Budget
The nice thing about a budget calculator is its flexibility. Not only can it be used to asses your current financial situation but you can also start planning future financial goals quite easily. The beauty of implementing a budget is that you are able to take back control of your money and make it work for you and a budget calculator can help you see the road to financial stability much easier.
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.
Following this, you have food expenses which also includes the food you buy when you eat out. Another category of expenses is the entertainment category which involves going out to the movies, concerts and plays. One last major category of expenses is the insurance category where you will need to pay car, home, health, disability and dental insurance. This is a category that is often left out by people doing budgets.
When you have a number of debts that are starting to create a financial problem each month, debt consolidation can provide ease for your life and mind. Tools such as a mortgage calculator mean that you can have some idea of whether refinancing your home is a possibility.
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.
Some budget calculators will also break down monthly expenditures to reflect a percentage, enabling you to see what proportion of your income goes towards each expense. Simply put, they offer a quick and simple way for you to get a preliminary idea of whether you should apply for a loan or invest your money.