BUDGETING

I enjoyed reading this interesting article By Paula Pant

We need all the #budgeting tips we can find these days! “You want the type of #budget that allows you to breakdown your #spending into five or six categories: not too few, but not too many.

Here’s a breakdown of what your budget should look like, when it's stated in five categories.

HOUSING should comprise of 35 percent of your take home #income. That includes the #mortgage or #rent, all #home repairs and maintenance, property #taxes, #utilities such as electricity, gas, water, and homeowner’s or renter’s #insurance. In short, it includes every housing-related #expense.

TRANSPORTATION should take up no more than 15 percent of your take home income. That includes any #car payments that you’re making, gasoline, car insurance, all the repairs and maintenance, the amount that you pay for parking, or your fares on public #transportation (BRT Buses, taxi’s, @ubernigeria)

Remember, transportation doesn’t just include your car payments, it also includes oil changes and your tune-ups, new radiator and timing belt.

OTHER LIVING EXPENSES, which are predominantly discretionary expenses, should take up 25% of your income. This includes eating at #restaurants, buying concert #tickets, #clothes, going to #sporting events, and taking the #family on a #vacation.

SAVINGS should consume (a minimum of) 10 percent of your budget. This is predominantly for #retirement as well as building an emergency #fund.

DEBT PAYOFF should consume 15 percent of your income. This includes your credit card and other #loans. It does not include your minimum mortgage or car payment, which are listed under "housing" and "transportation." (It does include any extra payments that you're making towards your #mortgage and car loan, above-and-beyond the minimum). There is no one size fits all. This is just a guide. The key is to create a budget and stick to it.

#MMWN#MoneyMattersWithNimi