What is a budget?
To create a budget we need to start with your net income, which is the amount of money you bring home after all taxes and deductions have been taken out. We want to figure the monthly income. Depending on how often you get paid depends on the equation to find your monthly income.
Weekly: your weekly income x 52 divided by 12=monthly income.
Biweekly: your biweekly income x 26 divided by 12
If you have a monthly salary, you don't have to do any math at all.
Here is an example
Total monthy bills=$1804
That's not even including groceries and necessities and gas for your car.
In Nicole Lapin's book Rich Bitch, she talks about your essentials being seventy percent of your monthly income, leaving fifteen percent for extras and another fifteen for your end. (I highly recommend reading her book. I have read it three times!) In the example essentials would be house and utilities along with the phone, car, and insurance. Technically your credit card and student loan is not an essential but you can include it. (I'll post an article on paying off debt soon:) ) If my bring home pay is $3000 a month, my essentials would be $2100. So, far I am in budget considering my total monthly bills is $1804. You want to be able to leave yourself at least fifteen percent for an extras you might consider wanting. Dinner with the girls, that five dollar coffee, etc. Out of my $3000 monthly income, my extras would be $450 a month, leaving another $450 for my end game. Remember, this is after your taxes and deductions.