![]() If you are showing a higher expense column than income, you need to make some changes. The good news is once you do this, you rarely have to do this again because you usually spend money in the same categories every month.Īfter establishing your monthly income and expenses, hopefully, the end result shows more income than expenses. This is the foundation of making a real budget that will work. It can be very tedious, but it’s important not to skip this step. Unfortunately, you will not be able to account for the areas where you spent cash, but it will provide you with a rough outline of your spending.īe prepared to devote some time to this task. You can find this information by reviewing your past credit card and bank statements. If you are not sure what your expected expenses are, start by looking at what areas you spent money on in the past three months. Write down a list of all your expected expenses for the month. Next, you need to determine what your monthly expenses are. However, if you have other types of income-such as self-employment or other outside sources of income-be sure to subtract obligations like taxes and business expenses to determine your take-home pay. If you have earned income from an employer where taxes are automatically deducted, this is easy to establish. ![]() Your final take-home pay is called net income, and that is the number you should use when creating a budget. The first thing you need to do when making your budget is to determine how much money you take home every month after taxes.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |