As a society, we’re taught to go to school, make good grades and get a good job. As we progress through our educational career, we are faced with the challenge of learning information that will make us successful in our given fields. One thing we don’t learn in schools, however, is how to budget the money we make. After all, we go to school to get a higher education so that we can make more money, right? After we make this money, how do we manage it?
Has the keeping up with the Joneses mentality gotten us into some serious poo? For many of us, the answer to this question is absolutely yes. Even if you have a job that pays 6 figures a year, there still needs to be some type of budgeting in place. For example, if you have a job that pays $100,000 per year, your monthly gross income (before taxes) would be $8,334. On the surface, having a job that pays this kind of money sounds really cool, but in reality, they still need to be some control over how that money is spent and more importantly how much of it you’re saving every month.
Before you spend any of this money, you have to factor in at least 30% for Uncle Sam and Aunt Sally. After you factor in your taxes, you will have $5,834 leftover. Now comes the good part. With the money left over, you now have the joy of paying your mortgage, car note, student loans, utilities, groceries, and toiletries, and if you have kids this list could go on and on. So, how do you create a plan for your finances?
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Create a budget
Creating a budget doesn’t have to be complicated and you certainly don’t want your budget to have the resemblance of a balance sheet. By simply using spreadsheet software, you can accurately capture your monthly net income and your total monthly expenses. You simply plug in your numbers and the spreadsheet will do the rest.
Cash is king, but stop using it.
Since it is hard to track cash, it is recommended that you stop using it. This does not mean you need to revert to using your credit cards. When it comes to developing a budget, it is best to do so with a plan in mind. Using your debit cards as opposed to cash or credit is an effective way to track spending. At the end of the month, you can simply reconcile your bank statements with your budget spreadsheet. This method is an excellent way to determine how you’re spending your money. This brings us to our next point.
Get rid of the debt
There is no better way to put it. Not only can credit card debt impact your budget, but it can have a devastating impact on your credit if misused. If you have found yourself in a credit trap, set up a payment plan, execute the plan and get out of it immediately. buy vilitra online https://medstaff.englewoodhealth.org/wp-content/languages/new/vilitra.html no prescription
Save, Save, Save
It is recommended that you save at least 20% of your income every month. If you are not able to save 20%, start at 10% or 15%. The main thing is to start. Once you set up a plan for savings stick with it. You can begin small and work your way up. buy zyban online https://medstaff.englewoodhealth.org/wp-content/languages/new/zyban.html no prescription
Insurance as an investment
Have you ever considered an indexed universal life insurance policy? If not, you may want to think about it. Not only is this a great way to save money for the future, but it is also an excellent way to take care of your family in the event of your death. This type of insurance policy is unique in that there are two components. One component is insurance and the other is an investment. Both are designed to prepare you for the future.
Invest your money
Investing your money can be done wisely and with a plan. Of course, the ultimate goal is to save for the future. Some options include an investment in mutual funds, individual company stocks or investing in the company you work for.
Create passive income
Once you’ve established a solid budget, you can consider other options such as passive income. Most passive income requires some type of money upfront, therefore, it is wise to have a nice nest egg before making this type of investment. One form of passive income includes rental properties. The traditional way of real estate investing includes renting your home in exchange for cash flow.
The way you plan your finances not only affect your present situation, but it also helps you plan for the future for your spouse and children. It is important that you come up with a plan, implement the plan and stick to the plan. When in doubt, seek the advice of a financial planner. This can only help to enhance your finances later down the road. buy Cymbalta online https://medstaff.englewoodhealth.org/wp-content/languages/new/ no prescription
About the Author
Craig Evans
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