Hey everyone! It’s the best day to start thinking of the thing most Americans least put into action – SAVING. Like budgeting, the best time to begin is NOW!
There are a million ways to save on so many things: but let’s talk about our budget that you just drafted from my last blog post. I imagine that the most of important things on your list pertain to:
If you are new to budgeting, do you have any idea what part of your income should be allocated to which items on your budget?
As an example, you are renting a studio apartment in Los Angeles, California for $1,300 per month. Do you know if you can afford it? Do you know what percentage of your budget should be set aside for housing or mortgage? From reading books on the subject, it is typically 25 – 35% of your gross monthly income.
If you mortgate or rent is $1,300, that would mean you would need to earn about $ 4,333 – 5,200 monthly gross.
This is just a guideline because the numbers for each category on your budget can be anything you want it to be or anything you make it. If you have never done this before or you need help, leave a comment on the comments page.