October 13, 2024 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

How to Create a Budget That Works for You

Currently, it seems like there is an unhealthy dose of doom and gloom in the U.S. in relation to the economy and personal finances. Indeed, with things like soaring mortgage rates and the effects the COVID-19 pandemic has had, many people are struggling to manage their finances.

We understand this and with California being one of the most expensive states to live in, we want to help. We get that money management can be difficult, but a key to tackling this is to create a water-tight budget and manage it effectively.


Below, we discuss simple ways you can fix your finances and offer a plan to build a budget that works for you and that allows you to keep on top of your payments, while also putting money aside for things like home improvements and holidays.

Take Stock of Your Current Financial Situation

Before you do anything you must be 100% clear on what your household brings in and pays out each month. First, assess your income and get a clear picture of your wages and any benefits. With that sorted, you should then list your outgoings such as:

  • House (ent or mortgage)
  • Home bills, including utilities and food
  • Car (insurance, tax, fuel, service)
  • Healthcare
  • Dental care
  • Pets


Make sure that you include every outgoing payment, even if it seems irrelevant. At the end of the day, it’s still something you have to pay and need money to cover it.

Create a List of Your Fixed and Variable Spending

With all your payments outlined you need to split them into fixed and variable and then you can make sure you have enough cash each week/month to cover them. It could be an idea to create a spreadsheet using Google Sheets to list all these payments.

Fixed Spending

Fixed spending includes things that have a set payment each week or month. These are typically high-importance and it’s essential you budget accordingly for them. Examples include your mortgage or rent, utility bills, grocery bills, health insurance, and vehicle maintenance.

Variable Spending

Variable spending could be unexpected things, or payments that can change on a weekly or monthly basis. This is where platforms like the My Canada Payday website can help if you have a shortfall such as a delayed pay cheque, or a random bill like a car repair.

Examples of other variable outgoings could be fuel, medical bills, food bills, eating out, gifts, new school clothes for your kids. Where there isn’t a fixed monthly amount, we recommend trying to create an estimate of how much the outgoing typically costs. For example, if you spend $30, $40, $20, $35 on fuel over four weeks, you could set the budget amount to $31.25 per month.

Create a Plan for Savings and Investments

Once you have covered your fixed and variable outgoings you should be able to see what money you have left each week or month. We like to call this free money; you can do what you want with this cash as you know your bills and payments are sorted. It is a great idea to set aside a portion of this free money for savings and investments to build for your future.

Savings

Most people build up a chunk of money in secure savings funds. Unlike investments, there is no risk in savings accounts (providing you use reputable financial organizations who protect your money).

It’s advisable to look for high interest savings accounts that offer interest rates above the typical average. Oftentimes these might be fixed-term accounts, or accounts that you can only access several times per year; you can see some examples here.

Placing a portion of money into a savings account offers a no-risk way to build your finances and save for the future. This money could be used for unexpected expenses, holidays, or home purchases, for example.

Investments

Investments typically carry more risk than savings but can yield better rewards. Consider things like stocks and shares or other business investment opportunities that arise. We recommend only using a small portion of your free money for investments due to the inherent higher risk.

Review and Adjust Your Budget Regularly

Bills change and prices increase. While your budget may have been accurate last month, this month something might be different. This is why you need to monitor your budget regularly; if possible, on a weekly basis. Make sure that you have set money aside for your bills, that the amount you are saving is right for the payment amounts, and that you are monitoring how much you put away for savings, etc.

Get Control of Your Finances and Become a Budgeting Expert

By following this guide, you can get control of your personal finances and primarily make sure you always have enough money to pay bills and other expenses. A budget also helps you combat things like rent increases, inflation, and unexpected payments.

At the same time, you can clearly see what free cash you have left each month which can then be used to enjoy your life or save for the future. The key is to be disciplined and account for every expense, no matter how seemingly small or insignificant.

Tags: in sponsored
Related Posts

The Best Scenic Drives in L.A

September 3, 2024

September 3, 2024

Southern California, particularly L.A., is widely considered the epicenter of American car culture. The culture includes some of the best...

Crypto in the Westside: The Flourishing Digital Currency Scene in West Los Angeles

August 6, 2024

August 6, 2024

West Los Angeles, known for its wealthy neighborhoods and tech-savvy residents, has become a hotspot for cryptocurrency and blockchain technology,...

The Hidden Tech Behind LA’s Food Trucks: What Keeps Your Favorite Snacks Safe

August 5, 2024

August 5, 2024

LA and food trucks: they go together like peanut butter and jelly. It’s hard to imagine La La Land without...

How Fast Do Gaming Sites Payout Winnings?

August 2, 2024

August 2, 2024

Online casinos are now more popular than ever, and besides the sheer volume of games with high or above-average RTP%...

The Mirage Hotel & Casino Closes, Paving the Way for Industry Changes

June 7, 2024

June 7, 2024

The Mirage Hotel & Casino, an iconic tropical island-themed resort on the Las Vegas Strip, is bidding farewell after 34...

Will Online Gaming Spell The End For Consoles?

June 6, 2024

June 6, 2024

In 2023, Alan Wake 2 was released to critical and commercial acclaim. It received numerous awards and was heralded as...

Investment Horizons: Long-term vs. Short-term Strategies for Futures and Stocks

June 5, 2024

June 5, 2024

Understanding investment horizons is vital for crafting successful strategies. Long-term investments involve holding assets over several years, prioritizing steady growth...

Creative Ways to Personalize Your Travel Gear with Print-on-Demand Services

June 4, 2024

June 4, 2024

In the current world, personalization has shifted to be a significant theme, not least in the travel industry. From a...

Dividend Investing for Income: Building a Steady Stream of Passive Income

June 3, 2024

June 3, 2024

Investing in dividend-paying stocks is a time-tested strategy for generating a consistent stream of passive income. By carefully selecting companies...

What is Brawl Stars and how to quickly increase your rank

May 8, 2024

May 8, 2024

BS is an adventure fighting and mob game for mobile devices that offers players a lot of action, fighting and...

The Essential Guide to Choosing Weather-Resistant Furniture for Your LA Patio

April 2, 2024

April 2, 2024

Living in Los Angeles means enjoying the outdoors almost year-round, creating a need for outdoor furniture that can handle the...

Legends in Las Vegas: Negreanu and Hellmuth’s Road to the 2024 WSOP

March 1, 2024

March 1, 2024

The electric atmosphere of Las Vegas is set to intensify as the 2024 World Series of Poker (WSOP) approaches, drawing...

City of Champions: Unveiling the Sporting Legends of Los Angeles

December 3, 2023

December 3, 2023

Los Angeles is occasionally criticized unjustly for not being a city strongly supporting sports, yet such a claim is utterly...

What online crypto-friendly bookies are doing different

October 16, 2023

October 16, 2023

The online betting industry has witnessed a revolutionary shift with the advent of cryptocurrencies. It transforms the dynamics of wagering...

Top Mind Shifts Potential Entrepreneurs Should Make for Success

October 1, 2023

October 1, 2023

Entrepreneurs don’t work a 9 to 5, but they know how to manage their schedule in a way that allows...