In Budget 107, the expenses sheet listed the five most common transactions: Check, EFT (Electronic Funds Transfer), Online Payment, Cash, and VISA. Three of the five take money out of your checking account ASAP: Check, EFT, and Online Payment. You make the purchase at the checkout and even before they smile and thank you, your funds have been verified electronically and are on the way to being withdrawn.
Aug
24
In Budget 103-106 we examined how to put money into the budget. Now it’s time to see what happens each time you spend some of it.
Today, we have so many ways to get money from here to there. We pay bills online, use a debit card, have payments automatically withdrawn, whip out the charge card, and maybe even write a check once in a while. And if we need cash, we stop by the ATM. Little wonder that keeping track of everything takes more than the old-fashioned check register.
Aug
20
In a perfect world, you would be setting up your budget while still living at home. All your Needs would be met by your parents and your budget would consist only of Wants, like entertainment, spending money, and maybe a “Buy a car” fund. As such, there would be no bills, no deadlines, no due dates.
More likely, you do have expenses and bills that need to be paid on time. If you’re just setting up a budget you will need to prorate the amount in each column. In other words, you will be stocking up each column with an amount that means you are current today.
Aug
15
Your budget is a way to keep track of income and expenses, right? So where does it live? Just where is this money? Where are these columns?
The money can be in a savings account, checking account, or stuffed in envelopes in your sock drawer (which is, by the way, the first place the burglar will check). Most likely, you will keep your budget funds in a checking account because it is the easiest, safest way to deposit and withdraw your money.
Aug
8
Have Budget 104a and 104b made sense so far? If this is all brand new to you, then reading things over more than once may really help. Also, try to be patient. Let things sink in. Always remember that you’re taking some incredibly important steps that will pay dividends the rest of your life.
Right now let’s step back from number crunching and look at some questions you may be asking yourself.
Aug
7
In Budget 104a, we dreamed up Tom, whose financial profile is typical in terms of job, frequency of pay, and expenses. I asked you to try to calculate how much Tom needs to put away each pay period so all his expenses are covered. Before we get in and drive away, let’s look under the hood.
Aug
5
You’re ready for Budget 104a if you’ve racked your brain for every expense you’re likely to encounter. Now let’s look at how to set aside enough to cover your expenses, starting with an example.
Jul
31
With your list of expenses in front of you, it’s time to distinguish which are Needs and which are Wants. Just to be clear, Needs are those things that we cannot live without, more or less, and there are three levels.
Level 1: Have these or die. This list is small—food, water, shelter, clothing, potty.
Level 2: Have these or suffer (and possibly die later): Soap and water, toothbrush, toothpaste, and other hygienic needs, and dental / doctor visits.
Jul
30
Before making out your first budget, you will need to figure out where your money comes from (income) and where it goes (expenses). Start with a blank sheet of paper and draw a line down the middle. Above the left column, write Income. Above the right column, write Expenses.
Now comes the fun. From memory only, start listing income (both the sources and amounts). Do you know exactly how much you make? Do you know all the sources of income? Do you have income that isn’t very obvious? Does your income fluctuate? Be as complete as possible.
Jul
13
The answer may surprise you.
For many people, sadly enough, the word budget has several horrible and complicated meanings. To take the fear and mystery right out of it, let’s look at what a budget is and is not.
What it isn’t: A budget is not something you need a computer to do. A budget is not a device to take all the fun out of life. Nor is it a hard-and-fast set of rules to follow no matter what.
