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Easy Budget Plan

Many years ago I came up with an easy way to budget my income.

1. Add up all your "Must Pay" amounts and get a monthly amount. Don't forget those annual or semi-annual bills.
This would be rent or mortgage, car or other payments, utilities, insurances, taxes, credit payments.

2. Once you have this figure put that much monthly in a separate bank account just for paying bills and use it for only that.

3. You will have some money ahead because there are actually four extra weeks in a year. This extra money will likely be needed for unexpected bills that come up over the year.

4. Whatever is left is for food, clothing, entertainment, etc.

5. If there isn't much left you need to think of a change in your lifestyle by either earning more or paying off some of the higher interest credit cards or ???


Contributor's Note

Have an organized day today.

Contributed by connections on March 14, 2008, at 10:52 AM UTC.

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