Simplfy your budget

Moneytrackin is a fantastic service that provides accessibility and sharing of the household budget, but without an easy and effective method for using it, it is not as useful as it could be.

I recently read the following article on budgeting:

I've simplified the budget even further:

1. Calculate your monthly take-home income.
2. 70% of that amount is for all your daily living expenses. This just combines the "committed" and "fun" categories in the article.
3. 20% is for "long-term" savings. This combines the longterm savings and retirement categories from the article.
4. 10% is for "short-term" savings for vacations or home improvement, etc.

With moneytrackin, I created 3 accounts (committed, long-term, and short-term). At the beginning of every month, the corresponding amount of our take-home income is added to each account using the periodic transaction function in moneytrackin. At the end of every week, I simply type in each of that weeks transactions in the appropriate account (almost always committed).

My wife can login to see the balances at any time to adjust her own spending, and so can I.

Granted, the 70/20/10 method may need to be adjusted depending on your specific situation, but the essence of the method has worked really well.
Tagi: budget
Opublikowane dnia 24-10-2007 21:17 | 1 Komentarze | Dodano do ulubionych 1 razy | Oznaczono 0 razy jako niewłaściwe


#1     Nice tip! I'll try this technique :-)
Moneytrackin' staff -
Opublikowane dnia 25-10-2007 15:52

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