Are you struggling with managing your personal finances? Struggle no more! I created The Financial Planning Kit, which is designed to assist you with saving, budgeting, and eliminating debt. This kit includes a Monthly Budget, Bill Payment Tracker, and Savings Tracker that will help you create a solid budget, keep track of your bills, and save consistently.
The key to creating a Monthly Budget that works is:
- List and categorize EVERYTHING that you pay with cash or credit
- Include your monthly income
- Your income minus expenses should be zero each month
- Find ways to decrease your bills
- Create multiple streams of revenue
Now let’s elaborate. Calculate and include your total monthly income. Your monthly income is your budget amount. Add in all of your expenses. This includes your savings, housing expenses, all utilities, food, transportation, personal expenses, credit card bills, business expenses and other miscellaneous expenses. If you don’t account for everything that you spend money on, you will always overspend and overdraft.
At the end of each month your net income should be zero. Why? Because everything needs to be allocated somewhere. If you have a net income balance, allocate that money to your savings or retirement account.
Bill Payment Tracker
The Bill Payment Tracker is designed to help you keep track of your bills and pay them on time. List all of your bills, include due dates, amount due, amount paid, and amount outstanding. Always pay your bills on time to avoid late fees, increase in interest rates, and late payments on your credit report, which will result in a decrease in your credit score.
Always save at least 10% of your income. Whether you get paid weekly, bi-weekly, or monthly, you should be saving 10% of each paycheck. Your deposit dates on your Savings Tracker should be your pay dates, but they don’t have to be limited to your pay dates. Just because you get paid bi-weekly doesn’t mean you can’t save weekly. Saving more is always great!
Here’s another great way to use your Savings Tracker. If you want to save for a trip that costs $1,000, you get paid bi-weekly, and you have 6 months to save then you have 12 pay periods to meet your goal. Write in your 12-paycheck dates and plan to save at least $83.33 for 12 consecutive pay periods. If you can pay more, pay more and accomplish your goal sooner!
Happy Planning! If you have any questions feel free to share them below.