How do you budget your paycheck?

Question

Ok, Online I see all these articles about budgeting but I really don't feel like they would help a person like me. How does a person with an average salary, a few thousand debts, budget accurately?

Answer 1

First of all, pay off the debt first.
Debts will kill any good budget.
Unless what you pay out in interest is less than what you gain from investments.
Get an American Express Blue Cash card or any other that offers cash back instead of points.
I earn about $250 per year on my spendings.
That $250 towards a vacation or gifts.

1st - pay off debt
2nd - cut back on any luxuries, only buy if you have to as a necessity
3rd - think twice before you buy or do anything

Create a list of things that you spend on.
Get everything in shape like a diet.

Food - no junk food like chips, cookies, and soda
Apparel - buy on sale items or wait til it's on sale (works with everything)
Home - sell what you don't need on eBay
Utilities - go green, try to use less electricity
Dining - skip appetizer, salad, and desert

Create a list of all the things you and your love one spend money on.
Rent, mortgage, and tax are definite.
Dining out and shopping are the other major budget killers. Try to dine out less and eat more at home.
Dining out or ordering out, you pay at least three time the amount if you cook yourself.
If you are over weight, cut back on your portions.

Once you get pay, pay the debt first.

You have to think about saving for the future not just worry about monthly budget. A dollar save is a dollar and 5 cents earned. Money will help you make more money. If you save $5000 a year and invest that money in a E*Trade savings or HSBC saving, you will get about $200 to $250 in interest to spend each year.

If you don't want to work forever and retire early like 40 or 50. Save and invest in anything is better than spending it on junk.

Answer 2

Some people laugh about the way I do it, but it works for me. Obviously my rent and car are the two biggest payments I make a month. I get paid weekly. I split both of those into 4 equal payments and each week write a check for the 1/4 and hold the checks until due. That way I'm not hit with a large payment that takes an entire check. All the little bills, food, gas, etc. I split up into each week due.

Also my budget is on paper. That way I know what is due when and can plan accordingly. Of course there are always incidentals, but for the most part I try to stick to what I've planned out.

Answer 3

I do a zero dollar budget. That mean I spend every dollar on a written budget. I start out with essentials like housing, food, utilities. Then I list my bills smallest to largest. Then savings. Then I include a blow column because I know I will blow some money, so why not have it in the budget.

Then I start filling in the blanks. Any extra money I find goes toward the smallest debt. Once it's paid off, that money plus the minimum will go toward the next smallest debt. Then on and on.

Answer 4

I'll tell you how we do it: Two checking accounts!

My fiance added up all of our bills for the month (including groceries, gas, all the essentials) and as an example, we'll say the total is $2000. We get paid weekly, so we divide that amount by 8 (four paychecks apiece) which comes up to $250 weekly for bills. On pay day, we immediately go into the bank and move $250 into an account we've designated as our "Billing Account", and the rest goes into an account called our "Spending Account", which is strictly for us to blow on going out to eat, renting movies, etc.

I really hope this helps, it has worked WONDERS for my fiance and I! Good luck, let us know how it works out! If you have any questions, feel free to email me.

Answer 5

I have two different checking accounts. My first account is for bills and investment purchases (which is automatically withdrawn, monthly). The second one is for smaller expenses (groceries, gas, etc). I split my paycheck 60/40. 60% towards my first account. 40% towards my second account. I've been doing this for 5 years and it works well for me.

Answer 6

Budgeting helps you to save money and to see where you spend your money. It disciplines you not to overspend.
People who are wealthy all budget their money. If you want to live paycheck to paycheck, don't keep track of where you spend, pay late fees, pay interest on CCs, trash your credit score, pay higher interest on car loans and mortgage loans, have fights with your spouse over money, and worry about money.
Get the picture???

Answer 7

I do mine like this:

-Paycheck - $1,590.21 - every two weeks - $3,180 per month
-Rent: - $890.00 - Monthly
-Car: $313.02 - Monthly
-Groceries: $500.00 - Monthly
-Cable/Internet/Phone: $193.00 - Monthly
-Water: $23.00 - Monthly
-Electricity: $79.00 - Monthly
-Cell Phone: 45.00 - Monthly
-Car Insurance: 260.00 - Monthly
-Renters Insurance: 15.00 - Monthly
-The rest for savings for clothes, medical, and emergencys