If you are wondering how to budget your money wisely, the first step is determining your monthly cash flow. You can assess the weaknesses in your monthly budget once you understand how your spending compares to your earnings. Keep reading to learn a few tips on how to create a monthly budget that works for you.
There’s no mystery to budgeting your money wisely. The first step is to figure out your monthly income. Your monthly earnings include income from your primary employment as well as any miscellaneous income: ride-share driving, babysitting, dog walking, etc. Don’t forget to include other sources such as child support payments.
If your monthly income varies — as it does for many freelancers, small business owners, or people earning hourly wages — take an average of the previous 6 to 12 months of earnings.
Next, add up everything that you spend in a month. Be sure to include:
Subtract your monthly spending from your total monthly income to determine if you are spending more than you earn. A positive balance on your bottom line is the first step to budgeting.
If you spend more than you earn, it is time to take action. Consider these budgeting tips:
You are ready to determine how much to save for your future after you balance your income and expenses.
Budgeting money wisely should include a sound retirement savings plan. You may want to employ other savings tools as part of your monthly budget even if you contribute to an employer-sponsored savings plan.
Synchrony Bank offers a wide range of deposit products — including certificates of deposit, savings accounts and money market accounts — to help its customers save for retirement. Synchrony Bank offers its customers 24/7 online access, award-winning customer service and other perks, including free identify theft resolution.*
Call Synchrony Bank at 1-844-345-5789 today to learn more about budgeting your money wisely.
The Balance: Wants vs. Needs: How to Distinguish between the Two
*Identity theft resolution services are provided by CyberScout™
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of 05/25/2018.
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.