Label the top row with the 12 months of the year.

If you are a freelance worker or self-employed, you may be receiving your entire income without taxes taken out. Try to set aside about 20% of your income to pay your taxes at the end of the year.

Rent: $1,000 Electric: $100 Car payment: $250 Student loans: $400 Credit card payment: $100

Groceries: $350 Gas: $120 Entertainment: $300 Personal items (hair care, makeup, clothes, etc. ): $200 Vacation fund: $50 Savings: $200

For example: $600 (fixed expenses) + $550 (variable expenses) = $1,150 per month. $2,000 (monthly income) - $1,150 (total expenses) = $850 disposable income.

There’s no point in saving money if you still have outstanding bills to pay! You should try to allocate 50% of your income towards living expenses / necessities.

For example, you could split your extra money into paying off debt and putting it in a savings account every month. You could also give yourself a spending allowance or invest your excess money each month. Try to put 20% of your income toward savings or a specific goal.

Not everyone is in a position to cut back on spending right now, and that’s okay. Eating food, paying your bills, and buying clothes are all necessary to live life, and you shouldn’t feel bad about that. Try to be realistic on what you can cut back on. [13] X Expert Source Samantha Gorelick, CFP®Financial Planner Expert Interview. 6 May 2020. It’s easy to say that you can cut your entertainment budget in half, but it might not be fun to decline going out with your friends every time they ask. Around 30% of your income should be spent on things you want but don’t need.

Put 5% of each paycheck in a savings account. Pay off credit card balances in 12 months.

Save $8,000 in an emergency savings fund. Pay off student loans in 3 to 5 years. Save $10,000 for a downpayment on a home.

Be really specific when you write down what you spent money on so you don’t forget it. For example, you could write, “$22. 95 on a new watch for Mom’s birthday. ”

Try packing your lunch instead of buying one, exercising outside instead of at the gym, subscribing to an online newspaper instead of buying one, or getting your books from the library instead of buying them brand new.

At the beginning of each month, take a look at last month’s budget and see how you did. This can help you make adjustments for the future. If you got a pay raise or paid off a debt, this can also affect your budget.

Quicken, Mint, YNAB, AceMoney, and BudgetPlus all offer budgeting services.

Take a look at your budget and decide what you can afford to splurge on. Some months you might be able to afford a new pair of shoes, other months you might go for a latte or a new notebook.

If you can afford to put more money toward your debt each month, you should prioritize that. Paying the minimum payment each month can take a long time to pay off your debt, and you can pay a ton of money in interest rates.

It’s better to plan ahead for the unexpected now than let it catch you off guard. If something unexpected does happen, reach out to your credit card company and student loan company to see if they can forgive some late payments or hold off on collections for a few months. The general rule of thumb is to save enough money to cover 6 months of your expenses. For example, if you spend $1,500 every month, try to save $9,000 for emergencies.