Budgeting in Your 30s and 40s

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Budgeting in your 30s and 40s

• Presented By Profinance Blog

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Index

• Why budgeting in your 30s and 40s is Important?
• Do You Think Budgeting Is Hard?
• Know Where You Spend
• Know Your Goal
• Track Your Spending
• What And Which Are Fixed Expenses?
• What And Which Are Variable Expenses?
• How Can You Saving For Future?
• Budgeting in Your 30s and 40s is Worth the Effort
• Author Bio

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Why Budgeting In Your 30s and 40s Is So
Important???

• If you want to be able to live an enjoyable
  lifestyle while accomplishing financial goals
  like buying your dream home, saving for a
  comfortable retirement, or paying for education
  expenses, you need a budget

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Do You Think Budgeting Is Hard?

• No
• Budgeting doesnt have to be hard. ? You
  simply need to know the three main parts of how
  to set up and stick to a budget.

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The Main Parts Of How To Set Up And Stick To A
Budget 1. Know Where You
Spend 2. Know Your Goals
3. Track your spending
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Know Where You Spend

• The first step in setting up a budget is to
  know where to spend?
• In order to know where you spend, you can
  use an Account Aggregation Tool such as,
• Mint.com
• Personal Capital
• You also review your spending by-
• collecting your bank account statements.
• credit card statements.

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Reviewing spending habits can be a little
painful. Many people feel guilty about not
knowing what they are spending their hard earned
money on. Just know that this is a very important
step to get your spending in check. Being able to
see where your money has been going will allow
you to actually set realistic goals of where your
money should be going in the future.
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Know Your Goal

• The second step in setting up your budget is
  to know your goals. For example, do you want to
  be able to continue to take vacation? Are you
  trying to pay off credit card debt or set up an
  emergency savings fund? Do you want to save more
  for a long-term goal such as retirement, or save
  up for a new house or car? Knowing these goals
  will allow you to be able to see the big picture
  about how youd like to use your money. It will
  help you actually stick to your budget.

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Track Your Spending

• The third step in budgeting is to be able to
  track your spending. People sometimes dread this
  step and have problems sticking to it. The
  easiest way that I found to be able to stick to a
  budget is to put your expenses into three
  categories -
• Fixed expenses
• Variable Expenses
• Saving for your future

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What And Which Are Fixed Expenses?

• These are things that you have already
  committed to paying, such as a
• Mortgage payment
• Rent
• Student loans
• Monthly bills
• Expenses that are relatively the same every
  month.

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What And Which Are Variable Expenses?

• These are things like -
• Shopping
• Eating out
• Groceries
• Entertainment
• Anything else that you might or might not spend
  money on each month.

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How Can You Saving For Future?

• Instead of trying to save whatever is left
  over at the end of the month, having a goal for
  this allows you to set up automated systems so
  that you are paying yourself first.

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The best way to track is to look at your past
spending and then set a goal for your variable
spending that is within 10 to 20 of your past
spending. Set that variable spending target to
come out of a different checking account, go onto
its own credit card, or put it on a prepaid
spending debit card. This is essentially like
giving yourself a Safe to Spend allowance every
month. If you have money left over at the end of
the month, it rolls over to the next month.
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Giving yourself a Safe to Spend allowance
allows you to really focus on being intentional
on what you spend your money on from a
month-to-month basis. It also allows you to
quickly see if you are able to stick to your
variable expenses target amount. You can always
try it out for one to two months and see if you
need to adjust your goal number for variable
expenses. Once you feel comfortable with this
number, you can set up all of your savings to be
automatic and you will have your variable
expenses completely separated from the rest of
your money.
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Budgeting in Your 30s and 40s is Worth the
Effort

• Going through these three steps might take a
  little bit of time and some effort, but it will
  allow you to take control of your month-to-month
  financial situation, and allow you to get on
  track with reaching your financial goals much
  more quickly.

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Authors BioTina Roth is a personal finance
writer and educator. In addition to being the
editor at her own Finance Blog, she is a
contributing writer to many other online finance
blogs. When she's not working on her budget
spreadsheet or looking for topics to write about,
you can find her playing with her kids or doing
her house decoration. To reach her and her
Personal Finance related Blogs you can visit here
http//profinanceblog.com.
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