With inflation continuing to spike, it’s more critical than ever to have a good budget and stick with it. Understanding where your money is going versus where it needs to go is more important than ever.
Financial counselors stress six simple steps in creating a budget that will work for you.
The first and most important thing is calculating your net income. This means your take-home pay after taxes and benefit plans. This figure forms the foundation of your budget.
Next, get a handle on your spending, finding out where every dollar goes. Determine your fixed expenses (home, utilities, insurance) compared to variable discretionary spending. With this information, you then can set realistic financial goals and figure out what you can save or use to pay down debt.
Now, make a budget using the 50-30-20 rule. Allocate 50 percent for your needs, 30 percent for your wants, and 20 percent for savings or to pay down debt. Be ready to make adjustments as you figure out ways to save money.
Finally, review your budget regularly and revise it if your situation changes.
Your Money Belongs to You
Retirees can benefit from more net income. Here at Council of Seniors, we’re focused on getting Congress to pass The SAVE Benefits Act. This bill can recover what should have been included in the Social Security cost-of-living adjustment (COLA) over a series of years. If it passes, eligible seniors will have $581 returned to them.
If you could sign our petition, right now, you’ll help us show Congress more and more people are supporting our effort to make this bill a top priority.
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