Are you tired of feeling like you have no money? Feel like you’re living paycheck to paycheck or just have debt building up. Today I want to show you how far organizing your money will take you.
I’ve been in the “living paycheck – to – paycheck” situation and it was not fun. Probably one of the worst portions of my life. I was stuck in a dark apartment that I hated and because of it I never had any money, therefore forcing me to stay inside the one place I hated the most. I know that your total income has a lot to do with being able to afford your desired lifestyle. But it also has to do with ensuring you have enough money for the necessary things in life while also making sure that you still have some spending money for the fun things in life.
Firstly, you need to determine your total net income per paycheck, most people generally get paid bi-weekly, every two weeks. Please do not include bonus checks that you may receive from time to time and do not include your paycheck amount with overtime payed. You want to know what your basic steady income is for each paycheck and each month. This is the money that you can fully depend on 100% of the time just by going to work everyday.
Next, you need to determine the necessities of your life, how much they cost as well as when they are due each month. Necessities should include but are not limited to the following:
- Utilities (water and electric)
- Gas Money
- Car Insurance
- Health Insurance
- Phone Bill
- Paying off any small debt – in payments (credit card balance, etc.)
- Children expenses – I don’t have any yet so I’m not sure what this entails …
Yes this seems like a lot but the more you place on your budget and are prepared for the less stressed you will be and the more planning of fun activities with your spare money.
Now list down how much each necessity is per month. For unstable items that can change on a monthly basis, such as utilities, I would list the average payment that you have had over the course of a couple of months and then add ten or twenty dollars to the budget just to be in the clear. If one month the unstable item is less than expected then that money can be put towards your spending account, otherwise known as a little bonus for yourself. If you budgeted the correct amount then cheers to you, you’re in the clear.
Once you have everything added to the necessities list and totaled up, all you have to do now is divide that by two, for bi-weekly, therefore calculating how much you need each paycheck to go towards your bills. Once you now the total amount of bills and then subtract it with the total net income of your paycheck, what’s left is your total amount of spending money you will have each paycheck.
All you need to do now is make sure that you stick to this budget and you will be in the clear and always in control of your own money. Life is always easier when you have your money handled and most importantly when you lose the stress of wondering if your bills will get paid. Leave the stress behind and start your budget today!