Part 3: It All Comes Together..
Happy Monday! And it’s now March–already. Have you gotten your budget ready yet? Well, this is the final part of the You Need a Budget Series, which means you should have decided why you need a budget and what categories you need and how to figure out your monthly income. Today, let’s talk budget amounts.
Of course you know some things like your mortgage and your phone bill, car insurance– anything that is the same amount every month.
Things like electricity and water you may have to estimate until you have a better idea, unless you can see what you spent over the last year. I average it out for the year and budget that amount monthly. Some months it will be a little less and some it will be a little more but you will have money accumulated in that budget category for the “more” months from the “less” months.. does that make sense?
I would take everything but the groceries, eating out and entertainment budget and subtract it from your monthly net pay (ours will be $3,000).
So in this case, you’d have $662 left for groceries, eating out, entertainment and any kind of savings and/or debt you had. I would budget $400 for groceries, $40 for eating out and use the rest as savings and/or a debt snowball on that car payment. 😉
That will all just give you an idea though. I’m visual so I like to show numbers with what I’m talking about it. I think it’s really important to budget to $0 though. If you have $10 left in the budget, call it “savings”. If you leave it, it will get spent!
Another really great tool for this to give you some perspective is this budgeting tool that Dave Ramsey has on his site. Each category has a little drop-down that explains what would fall under each category. I wouldn’t just use this, but I do think it’s a neat tool to see what you are “supposed” to be spending with your income level.
Isn’t that neat? Budgeting doesn’t have to be such a pain though. Of course, it’s annoying when you run out of money before you get to the end of your budget.. but you only have what you have. Unless you want to be rolling around in credit card debt, of course. I take it as a challenge though.. for instance, I want to get our grocery budget below $400. Every month we seem to be pretty much right at $400. I’m challenging myself to do less convenience stuff, even though we do little now, and just be more frugal with it and get it down. Even if it’s only to $380 every month! That’s an extra $20 for our Snowball! 😉
And you all know I’d recommend YNAB to keep track of it all. 🙂 Here’s my referral link if you’re interested in getting $6 off the purchase price. There is a 34 day free trial to give it a test run if you aren’t sure, also.