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dandyandy
Joined: 13 Sep 2006
dandyandy's page
Posts: 1
70 Magic Points
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Subject: Having Trouble getting Started
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Wed Sep 13, 2006 7:26 am
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I am having a hard time getting started with my new budget. I have restarted my budget three times because something is not right in my budget. The problem is my income does not match what my bank statement says. For instance
I have all my money already planned for my envelopes and then when I get my funds from the bank I have way to much money to distribute. Now I think it is because I have a bigger beginning balance so that money is just added.
My question is ..How can I just get started.???I try to get started however, the monies just dont add up and I cant seem to make it balancedo I need to spend a week not spending any money and try to get my balance to a zero first before implementing this budget???
Hope I have not been to confusing.I tend to do that sometimesWould appreciate any help you could give Thanks.. |
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Richard
Moderator
Joined: 27 Jun 2006
Richard's page
Posts: 120
5312 Magic Points
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Wed Sep 13, 2006 7:29 am
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hi dandyandy
welcome to CreditMagic forum
The easiest way to get started with this is to do it on paper first.
1 List all sources of income from you and your spouse if you are married You are going to use your base pay and pay stubs to obtain this information. DO NOT nclude overtime pay or bonuses that you get in this computation. The reason being is that it will not always be part of your paycheck. There is no gaurantee you will get a bonus or overtime. Even if you are able to have overtime or bonuses, that is considered "extra money". Depending on your pay cycle, you want to use a pay stub with all the deductions for medical, union dues, long term disability insurnace, and any other AFTER-TAX deductions you may have. You will also want to use a paystub that has none of these after tax deductions too. Add the 2 net totals of the paystubs together, and that is you net monthly income. That is waht you have to use to live on each month. If you are a 2 income household, do the same thing with BOTH persons paychecks. The book mentioned at the bottom this post will have further information about using paychecks with different pay cycles and variable income.
2 List all of yuour debt obligations. You are going to list the current balance you owe and the monthly MINIMUM payment that is on the respective statements. DO NOT list what you pay each month, just the MINIMUM payment. This would include, auto loans, credit cards, mortgage, home equity loans or lines of credit that you owe or a second mortgage, and student loans and any other debts that you may have that you pay monthly.
3 List all your monthly expenses, such as cable, cell phone, telephone, utilitles, groceries, clothing, medication, life, auto and home insurance, licneses tabs, property taxes,gifts for birthdays and holidays, medicine, co-pay for doctor visits, hair cuts, club dues, magazine or news paper subscriptions etc. Be sure to list the amount you pay on these each month. If some of these items are not paid monthly, then list the amount you would bay if it were a monthly expense. For example, property taxes, if not included in your mortage payment are on an annual bases. Take the total amount you owe for the year and divide it by 12. This will give you and fairly good estimate of the monthly amount you would need to set aside each month to be able to pay when the taxes are due
3 Total your income from all sources. Be sure to use NET INCOME only.
5 Total the balances of all your debt. Then total the monthly minimum payments.
6 This will become your spending plan and it must balance. The amount of income should be equal to the amount of monthly minimum payments of all of your debt. If it does not, then you will need to look at your monthly expenses for ways to reduce the spending in various areas so that you will be able to have enough funds each month to cover your debt payments and expenses.
It may take a few tries to get it to balance, but once you do, then put your numbers in your computer.
You should have also received the e-book version of Money for Life and the e-version of the Money for Life Workbook. The work book should have some forms in it that you can click on and then print them out and use them to input your numbers on paper first. The work book also provides help in putting your numbers together to create your spending plan. I would suggest reading the BOTH BOOKS PRIOR to beginning this task. This will eliminate the frustrations you have been experiencing
I would also suggest giving the Customer Support folks a call. They are very knowlegible and an excellent source for help.
Hope this helps you out.
Richard
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TexasGuy
Joined: 20 Jul 2006
TexasGuy's page
Posts: 24
1775 Magic Points
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Wed Sep 13, 2006 7:32 am
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thanks richard
This information is very useful.
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Beware .. here comes the TexasGuy |
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sdchargers_63
Joined: 13 Aug 2007
sdchargers_63's page
Posts: 1889
1356 Magic Points
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Subject: budget
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Mon Aug 20, 2007 1:44 am
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| Well.....here is osme advice, from a single parent. i know sometimes it seems difficult. But..this is what I'm doing. Being on a 'fixed' income, I take so much money, out of my checks ( bi-weekely). Maybe 5% or 10% of my checks. After you take the money out, put the money into a savings account...and keep it there. Every little bit adds up..you'll see!! I know it seems like it would be a long time before you could do anything ( pay off debt, etc), by doing this, BUT..this way you DO have a nest egg' to start with. maybe you can tell yourself, " I will wait until I get $500.00 or $1000.00 before I start to pay things off. this way you have something to 'lean back on'. Hope this helps and makes some sense. |
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Laura
Joined: 21 Jun 2007
Laura's page
Posts: 1334
35466 Magic Points
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Mon Aug 20, 2007 5:34 am
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Great advice. Thanks Wendy.
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Regards,
Laura. |
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1307
Location: Los Angeles, California
29555 Magic Points
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Mon Aug 20, 2007 5:36 am
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Yes I do keep savings from my checks. That helps. I feel that is the best way we can save money also for any emergency.
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Keep in touch
Carol |
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Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1240
28942 Magic Points
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Mon Aug 20, 2007 5:38 am
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I am of the same opinion.
Yes but making it a habit is a must. Just that I am in need today so I save is a bad approach. Our future depend on how we handle finance toady. So keep it up.
Justin |
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sdchargers_63
Joined: 13 Aug 2007
sdchargers_63's page
Posts: 1889
1356 Magic Points
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Subject: saving money
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Mon Aug 20, 2007 4:01 pm
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| Just wanna put my ' 2 cents' in ( as usually!!..LOL ) being in the military, I have 'retirement account'. So much of my military checks are deposited into this account, every month. I can 'retire' on this money ..ALSO, if I REALLY need it, I can gt a small loan AQAINST this account. My point is I ( slowly, but, surely) am setting up something I can 'fall back on'. I learning to take things 'day by day'..to handle issues 'day by day'. |
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Laura
Joined: 21 Jun 2007
Laura's page
Posts: 1334
35466 Magic Points
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Tue Aug 21, 2007 5:14 am
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So in few words you are securing your future.
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Regards,
Laura. |
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smilenyc07
Joined: 23 Sep 2007
smilenyc07's page
Posts: 39
2057 Magic Points
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Fri Sep 28, 2007 4:46 pm
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| Quote: |
Well.....here is osme advice, from a single parent. i know sometimes it seems difficult. But..this is what I'm doing. Being on a 'fixed' income, I take so much money, out of my checks ( bi-weekely). Maybe 5% or 10% of my checks. After you take the money out, put the money into a savings account...and keep it there. Every little bit adds up..you'll see!! I know it seems like it would be a long time before you could do anything ( pay off debt, etc), by doing this, BUT..this way you DO have a nest egg' to start with. maybe you can tell yourself, " I will wait until I get $500.00 or $1000.00 before I start to pay things off. this way you have something to 'lean back on'. Hope this helps and makes some sense
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Yes I do keep savings from my checks. That helps. I feel that is the best way we can save money also for any emergency.
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I am also saving in two accounts: I have a regular savings with my Credit Union and a 401(k). Its all taken out before I receive my check, so this way its safely put away before I can spend it. This way I have an emergency fund & retirement savings. |
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Laura
Joined: 21 Jun 2007
Laura's page
Posts: 1334
35466 Magic Points
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Sat Sep 29, 2007 4:13 am
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Its really a learning when I go through this forum. An experience. Thanks all for your precious participation. 
_________________
Regards,
Laura. |
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SunDevilsFan
Joined: 09 Nov 2007
SunDevilsFan's page
Posts: 184
Location: Sunny Arizona
6612 Magic Points
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Wed Nov 14, 2007 6:05 am
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| I think Richard made MANY valid points... The one I wish I had implemented years ago was not to include OT..... LOL |
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fred333
Joined: 22 Jan 2008
fred333's page
Posts: 27
814 Magic Points
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Wed Jan 30, 2008 4:09 pm
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yea that OT always gets me in trouble when I am budgeting.
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Trying to find debt settlement in my life. |
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