#HowToBudget ~Its the beginning of the month and If you haven't wrote out your monthly bills and totaled how much you will pay towards your bills, you should do it today. A monthly budget shows you WHERE your money will be going. Write it down so you can make it plain and clear.
Below is a simplified example of how I help my clients create a budget and stick to it. Now this budget format is ONLY for your (Fixed) bills each month, meaning these bills come every month on schedule. Here's how its broken down:
Number your Bills: This numbering system reminds you how many fixed bills you actually have each month.
Bill Name: You need to know what bill you are paying.
Full Amount Due: This is important so that you are clear on the full amount down to the cent. (CC bills vary)
Due Date: Knowing what day your bills are due helps you budget your paychecks. You get paid on certain days of the month, corresponding bill thats on or near that pay date should be paid with that check. Remember, being even 1 Day past due on your bills can cause a late fee. ($5-10) and this adds up quickly. (Ex: if you are late each month on your cell phone bill they are charging $8 late fee monthly, thats $96 annually) -Not Worth it-. Pay on or before the due date.
Minimum Balance: This section is used for credit cards.Some people will not pay their credit card balance in full. Paying at least the minimum balance will help you keep a good relationship with the creditors as well as keep you credit good and avoiding late fees. (late fees average $25-$45 monthly, that $300-$540 annually) -Not Worth It-
Total Out: At the bottom, total all of your bills so that you know how much you will pay this month. This keeps your money within a budget.
Now, when you get paid you know exactly where your Money Is Going, What Date that money will be used, and How Much will be Spent.
#MonthlyBudget #CroftonCreditConsulting If you need further assistance with budgeting, Please give us a call. We would love to help you. 424-233-8664