Navy Federal | MakingCents: Budget Basics for New Savers

Navy Federal | MakingCents: Budget Basics for New Savers


If you want to save money you have to
create a plan and figuring out a budget should be your first move. With the right budget you can calculate how much you can spend while still putting aside enough money to pay the bills and grow your savings. So let’s begin. Start with your income. Look at how much money you earn each
month after taxes. Don’t forget to add any additional income you may receive inaddition to your job, stuff like tips or bonuses. Now figure out your expenses. Some you’ll know immediately. Others you may need to calculate over time. Put your expenses into two categories: fixed and variable. Fixed expenses include mortgage or rent, loans, insurance, utilities, and other scheduled payments that stay close in price month to month. Variable expenses include
entertainment, groceries and clothing, and other expenses that can fluctuate. Compare the expense and income totals. Are you living within your means? Or are you going over budget? Take a serious look at
your variable expenses. Could you cut back? Rework your spending habits. What could you lose to pump up your savings? Set monthly goals for both savings and
each expense category. Now that you have a budget, continue to track your income and output for a few months. Is your budget realistic or do you need to change things up? Set priorities. Which savings goals should you put money toward? Looking at income and expenses, decide what should
save for and how much you can afford. Be realistic. You can get into trouble by spending too
much on things you don’t need. Limit spending to what is necessary and affordable. As times change you may need to
update and adjust your budget so it still works for you. Just remember sticking to a budget saves money and headaches. It’s the first step toward a
healthy financial future.

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