How to Watch What you Spend

Don't go too low level in a budget, no one wants to spend their life tracking how much they spent on groceries 1 month compared to another month. Instead try to follow something like
X% Monthly income on mandatory or committed expenses (rent, food, gas, etc)
Y% Monthly income on fun money (movies, dates, games)
Z% on short term savings (money into a savings account for unforeseen expenses)
A% on long term savings (money meant to grow over long periods of times like 5-10 years; stocks mutual funds)
B% on retirement (IRA, etc)

You can still keep track to a low level, but at a glance you can see if you're been over spending on mandatory expenses, fun money or not saving enough. It's worked great for me for many years and was inspired (and explained much better) by this article:

The 60% solution:
articles.moneycentral.msn.com/SavingandDebt/LearnToBudget/ASimplerWayTx
Tags: 60% budget savings solution spending
Inserito il 05-04-2008 16:48 | 1 Commenti | Preferito 1 volte | Segnato 0 volte come inappropriato
 

Commenti

#1     Nice Tips! Thanks
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Regards,
Fadzril Muhamad
Inserito il 18-04-2008 04:29

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