Following personal budget tips for a rainy day isn’t always easy. You may have some good intentions, but at the end of the day, there just isn’t any money left. However, somehow whatever you make is spent before you can get to the next paycheck. You need a template for your personal budget. So, read on for a proper blueprint to follow.
Going beyound personal budget tips
To follow this template for a personal budget, start by creating or using a spreadsheet for personal budgets. Take a look at what you bring in each month. Next, write down your fixed expenses. These are things like rent, car payments, utilities, etc. Figure out how much you need each month for groceries and other essentials. This is your bare-bones budget. It’s good to know what you need to get by each month.
Keep your spreadsheet for personal budget handy and modify it as the days go by.
Next, it’s time for a little bit of math. Start with what you bring in each month and subtract all your core expenses. What you’re left with is your discretional income. This will pay for entertainment, clothes, etc. And from here on out, part of that discretional income will go into a savings account.
Pick a number you’re comfortable with. Maybe that’s just $20 per month, maybe it’s $500. Put it in your budget and treat it like any other bill. It won’t take you long to get into the habit of setting aside that money for savings.
Be your own app for personal budget enchancments
To make saving even more hands-off, talk to your bank about setting up a separate savings account. Then set up an auto-deposit to have the savings transferred to the new account as soon as your pay check comes in each month. If you don’t see it, you’ll never miss it and your savings will run on autopilot.
Don’t forget to audit your savings from time to time. Take another look at your spreadsheet for personal budget. Can you increase your savings a little more? Another great way to boost that savings account is to take any extra money – things like birthday cash, tax return, bonuses, etc. – and put them straight into the savings account. Again, you won’t even miss the money, but it will help you build up your savings quickly.
Make sure your savings are sitting in an interest bearing account. Since you won’t be touching this money unless it’s a dire emergency, you should be able to earn at least a little interest. Talk to your banker about your best options and start putting your savings on autopilot.
One last tip: Talk to your employer about matching 401K funds. You may be able to get a contribution from the company you work for towards your retirement savings account.