8/28/2023 0 Comments Mint budget breakdown![]() What do you spend on once or twice a year (like Christmas Gifts and Car Insurance)? Make Annual or Goal Envelopes for those expenses. Think about the whole year instead of just one month. Now it’s time to step back and take a broader view of your budget. What Envelopes make up each of these categories will vary depending on your personal circumstances, but if it helps, feel free to use the Envelopes mentioned above as a starting point. When you’re ready, create your budget in Goodbudget. If your situation requires you to spend more than 50% on your needs, then of course you should do so. But keep in mind that these are just guidelines. So, if you take home $2,000 a month, set a budget that allocates $1,000 to your needs, $600 to your wants, and $400 to your savings or debt reduction. ![]() Start with your after-tax income – the amount that goes into your bank account each paycheck – and break it down into three parts:ĥ0% Needs: Expenses you have to pay, like rent, utilities, and groceries.ģ0% Wants: Expenses you choose to pay, like eating out, and entertainment.Ģ0% Savings / Debt Reduction: Money you save, or use to pay down debt. It’s a great way to manage your money, and it’s also the best way to make sure you’re not spending more than you make! A good rule of thumb is to use a 50-30-20 breakdown for your budget. Create a Budget Based on Your IncomeĪs the name suggests, a budget based on your income proactively assigns a role for each dollar you make. That way, even if you get off track somewhere else, you’ll be less likely to say, “Oh, I guess I’ll just use savings” since you’ll want to protect the money you’ve saved in your Holiday Gifts Envelope. Then make an Envelope called “Holiday Gifts” and give it a realistic amount. ![]() Pro tip: Instead of vaguely trying to build up savings just because, decide on something specific to save for, like holiday gifts. ![]() When you’re done, move on to Step 3 below. If you’re not sure how much you bring in each month, head back to your account online and tally up one month’s worth of regular income to see what the number is. The goal is always to make sure that you’re budgeting (and therefore spending) less than you earn. You’ll have time to reflect on these numbers later, and the great news is that you can always come back and change them if you find they don’t work.Īfter you’ve created all the Envelopes you plan to track, keep an eye on the ‘Budgeted’ figure in Step 3. If your records show that you spent $150 on “Groceries” last month, create a “Groceries” Envelope and give it a budget of $150. Don’t worry about the exact numbers for now - these are just guesstimates. ![]()
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