You\u2019re broke. Thanksgiving and holiday travel costs piled on to missed work, gift buying, and treat-yourself nights out, and now you\u2019re afraid to check your bank balance or \u2014 heaven forbid \u2014 your credit card statement. We\u2019re here to remind you that it\u2019ll be OK. The cash hemorrhaging has come to an end, and pinching your pennies while carefully planning your upcoming expenses can help you to rebuild a nice cushion in your checking account.<\/p>\n
First things first, add up all of your monthly expenses<\/strong> \u2014 and be honest with yourself. If you\u2019re spending $300 a week on nights out for dinner and drinks, your budget needs to reflect that. Start with the big ones: rent, utilities, car payment, cell phone, student loans, etc. It helps to go back through your checking account to see where your money went \u2014 small bills like Netflix, gas, or grocery store stops are easy to overlook but add up quickly. Ideally, this total number should be less than your monthly income.<\/p>\n Now that you know what you are spending each month, take a closer look. Are you happy about spending $200 every month on Goldfish crackers, frozen pizzas, and 30-packs from the grocery store? You very well might be. Could you cut back on your entertainment expenditures to put more into your savings? Think about every dollar you know you have coming to you and assign it a place.<\/p>\n If you want to get ahead of the game, also consider how much you want put into your savings account each month<\/strong>. Think about your financial goals and timeline. If you want to buy a new car<\/a> in a year, set aside about $170 each month to give you a healthy $2,000 down payment next year (plus if you\u2019re used to spending that much monthly, the car payments will be easier to swallow). Not sure where to start? Try the 50\/30\/20 rule<\/a>: Spend 50% of your income on the essentials, 30% on personal expenses, and save the last 20%.<\/p>\n With all of this in mind, add up your goal monthly expenditures.<\/strong> This is what\u2019s known as a \u201cbudget.\u201d Anything left after your budgeted expenses can sit in your checking account for pop-up costs, like a birthday gift, automotive expenses, or if you decide you need to get the new iPhone. If you struggle with budgets, try these easy tips:<\/p>\n It sounds complex, but after you get your bills gathered up, a budget comes together pretty quickly. And once in place, you\u2019re just racking up cash month after month, putting you leaps and bounds ahead of the 49% of Americans with no savings<\/a> to speak of. All of that holiday spending will be nothing but fond memories in a few months\u2019 time.<\/p>\n","protected":false},"excerpt":{"rendered":" You\u2019re broke. Thanksgiving and holiday travel costs piled on to missed work, gift buying, and treat-yourself nights out, and now you\u2019re afraid to check your bank balance or \u2014 heaven forbid \u2014 your credit card … <\/p>\n\n