Budgeting 101: To Budget or not to budget
Whether you’re saving up to pop the question to a special someone, purchasing your first home or simply storing away money for a rainy day, a budget can help you get there. Here’s a quick guide to ensure you’re on the right path to your financial goals.
- Figure out your monthly income.
- List out your fixed expenses and variable expenses. Then categorize these expenses - entertainment, utilities, groceries, selfcare/grooming, etc.
· A fixed expense doesn’t change like rent or loans
· A variable expense can change, like gas
- Now you have a clear picture of your spending habits. Traditionally, your housing and living expenses should stay around 40% or under, 30% for other expenses and 20% for savings and 10% to put towards debts such as student loans, car or credit.
- Using this financial map, you can look at the areas that are adjustable. Your rent is non-negotiable, but your entertainment can be flexible. This is a great way to see where you can make financial adjustments to help you reach you financial goals and dreams.
Here are some great online tools and resources to start your budget today: https://globalcu.org/fab/
