![]() ![]() Celebrate your financial strengths, and improve any areas where you're not quite as strong (yet). Take time to examine your financial situation. Think about things you buy regularly that may be money drainers-such as snacks, magazines, and coffee-and consider saving that money for something else.Congratulations on taking the next step toward a better financial future with our Saving & Budgeting Course! Through this course, you will learn to understand your finances & establish successful habits for an improved financial picture. For example, $0.50 per day for a can of soda can add up to more than $180 per year. Watch out for money drainers, or items you buy on a regular basis that can eat up a sizable chunk of your income.Ask yourself if you really need an item, or if there's something else you want more. Don't pay for services you can do yourself.Consider shopping at thrift shops, consignments shops, and other places that sell used items.Exercise at home, or use public exercise facilities instead of purchasing an expensive health club membership. Borrow books, CDs, and videotapes from the library rather than buying or renting them. Be aware of where your money is going, and plan ahead to better handle unexpected expenses.Sometimes it's better to spend time than money. Consider a less expensive telephone plan, use coupons when you shop, and dine out less. Because Vanessa will likely have some money left over after taking care of her expenses, she decides to put a bit more into savings.īeing a wise consumer can help you stay within your budget. The $78 that remains is her discretionary cash. Vanessa subtracts her total expenses of $2,055 from her total monthly income of $2,133 to get $78.She decides to set her variable expenses-which include utilities, phone, groceries, entertainment, and car maintenance-at $600 per month.Rent is $800, her car payment is $250, cable TV costs $40, Internet access costs $35, and her car insurance averages $30 per month, for a total of $1,155. Next, Vanessa adds up her fixed expenses.Instead, she decides to save $300 per month, or $3,600 per year. (If she saves this amount regularly, at the end of the year she can save approximately $2,559). Vanessa wants to see how much she might save if she saves 10 percent of her monthly income, so she calculates $2,133 times 0.10 to get $213.30.She adds that to her monthly paycheck earnings to get a total monthly income of $2,133. She also receives $400 per month in alimony from her ex-husband. Vanessa's monthly paycheck earnings after taxes is $1,733.Let's look at how Vanessa creates her budget: To reach specific financial goals, put a set amount into your savings and/or investments. However, determine the amount that's best for you. It's recommended that you save 10 percent if you can. Based on how much money you have left after expenses, decide what percent of your monthly income you want to save each month.Ideally, your expenses shouldn't exceed your income. Use a calculator to calculate your budget (Microsoft's calculator can be assessed from the Programs menu). Subtract your expenses from your total monthly income.Review past bills and receipts to determine an amount you spend each month. For those that vary, try to budget a set amount for each month. Some of these expenses are the same amount each month, while others vary. List all of your expenses, including rent or mortgage, car payments, groceries, and entertainment.(To review adding and multiplying, view our Math tutorials.) Determine your total monthly income by adding your monthly take-home pay and any other income, such as alimony. ![]() If you have limited access to a printer, use a sheet of paper or spreadsheet application such as Microsoft Excel or Google Sheets. Budgeting helps you spend wisely and save money.
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