Create Your Budget: Understanding Your Spending
Finding extra money to save can become simpler when you have a clear picture of where your dollars are going each month.
Bulman Wealth Group provides an activity sheet designed to help you analyze your income and expenses, allowing you to see where you stand and identify opportunities to save.
Key Areas
The activity sheet helps you break down your monthly finances into these major areas:
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Income: Annual and Monthly Household Take-Home Pay.
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Essential Expenses (Things you need to have): These include Housing, Groceries, Healthcare, Transportation, Debt and Monthly Obligations, and Child and Dependent Care.
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Discretionary Expenses (Things you would like to have): This includes Personal Care, Gifts and Donations, Recreational, and Entertainment.
A Helpful Suggestion
Bulman Wealth Group recommends keeping your essential expenses to no more than 50% of your take-home pay. Reviewing your bank and credit card statements may help you complete the activity sheet.