![]() ![]() Variable expenses include items like groceries, gasoline, eating out, and entertainment. These are the areas where you can cut back the most and start getting ahead in your finances. You have a degree of control over variable expenses. ![]() Variable expenses are those that fluctuate from month-to-month. Now that you know how much money you have to work with, you can start budgeting for your variable expenses. You may need to downgrade to a smaller house or perhaps sell your car and get an old beater so that you have money left over for things like food, gas, and savings.Ĥ) Set a spending goal for variable expenses. If your fixed expenses are more than your total monthly income, you’re in trouble. The amount that’s left over is what you can work with for your variable expenses. Fixed expenses can include things like rent or mortgage payments, car insurance, car payments, and health insurance.ģ) Subtract your total fixed expenses from your total monthly income. There’s usually not much you can do to change the amount you pay on fixed expenses. Fixed expenses are those that stay about the same each month. You need to know how much money you have to work with before you start budgeting it out.Ģ) List your fixed expenses. If you’re self-employed or do work on the side, make a close estimate of how much you earn a month. Gather your pay stubs together and figure out exactly how much you’re bringing in each month. YOU NEED A BUDGET CLASSIC HOW TOHow to Create a Budgetġ) Assess your monthly income. Instead of hemming and hawing over every single purchase you make, you can just look at your budget, see if you have money available for it, and make your decision. Plus, having a budget can help you make decisions faster and more confidently. I think it has something to do with the feeling of control a budget gives you. There’s something about knowing exactly where your money is going that increases your confidence. By having a budget, you can know exactly what’s going in and out and focus on more important things in your life. You don’t know if you’re check is going to bounce you don’t know if you’re going to have enough money for the month’s rent you don’t know how you’ll pay for an emergency if it arises. ![]() Not knowing how much money you have at your disposal can create a lot of unneeded stress. If you don’t keep a budget, you’re inevitably going to run into a situation where you don’t have a clue about how much money you have in your account, and you’ll end up incurring some sort of overdraft charge. You want to be the man with a plan, not the man floating along with his head in the clouds. But when you don’t have a budget, your money controls you, instead of the other way around. And as men, especially as men taking this 30 Day challenge, we’re all about continual improvement. While I don’t start spending like a high roller, I’ve noticed that when I’m not following a budget, my financial situation stagnates and doesn’t improve. Of course, what ends up happening is that I get lazy, stop making time to review my budget, and fall back into just sort of winging it with my finances. ![]() But when I’ve used them, my financial situation always improved. I’ve had an on again, off again thing with budgets. The most effective tool to do this is the lowly budget. With the economy in the tank, it’s more important than ever to tighten our belts and get our finances under control. ![]()
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