Download - How To Create A Monthly Budget
HOW TO CREATE A
MONTHLYBUDGET
Understanding budget creation and management is instrumental in achieving financial freedom.
Here are four tips on creating a budget for financial success.
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Set a Budget
Step 1: Calculate your fixed monthly bills.
Fixed expense examples include: rent, car payment, student loans, insurance, utilities, and credit card payments.
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Set a Budget
Step 2: Calculate your variable monthly expenses.
Variable expense examples include: groceries, clothing, haircuts, entertainment, and gifts.
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Set a Budget
Step 3: Determine discretionary income.
Subtract monthly expenses from take-home pay.
Decide your monthly savings goal.
If you wish to save more, review and cut back on variable expenses.
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Set a Budget
Step 4: Build in savings.
Include your monthly savings goal as a fixed expense in your monthly budget.
Consider setting up automatic transfers into a savings account.
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:: TIP :: Cutting back on variable expenses is a great way to save money. Use our Household Cash Flow Tracker to help manage your expenses.
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Plan for Emergencies
Set up an emergency savings fund to cover for unexpected purchases or financial situations.
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Plan for Emergencies
Eventually, aim for saving the equivalent of three to six months’ of living expenses.
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Plan for Emergencies
Keep the emergency savings fund separate so it is more difficult to transfer funds to your checking account.
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Limit Your Debt
Avoid making any purchases you can’t pay for right away.
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Limit Your Debt
Prioritize paying off high-interest credit card debt.
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Limit Your Debt
It may make sense to take advantage of student loan grace periods by paying off credit card debt or contributing more to your savings.
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Save for Retirement
The earlier you start saving, the longer investments grow.
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Save for Retirement
Take advantage of company-offered 401k savings plans, or consider a Roth or Traditional Individual Retirement Account (IRA).
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Save for Retirement
Reassess your budget regularly to ensure largest contributions within your means.
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Finances can get off track from time to time. Creating a realistic budget can help develop smart lifelong financial habits.
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This information is general in nature and is provided for educational purposes only. Regions makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented. Information provided should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. Regions encourages you to consult a professional for advice applicable to your specific situation.