If you want to achieve your financial goals and acquire wealth, you must have a budget. You need to know how much money you have coming in each month and know what every dollar is doing. See the example budget below to compare it to yours.
Net Monthly Income
Planned
Actual
Job
$3500
$3500
Other
$0
$250
Monthly Expenses
Planned
Actual
House/Rent
$1500
$1500
Truck Loan
$300
$300
Fuel
$350
$350
Car Insurance
$110
$110
Utilities
$150
$200
Internet/Phone
$100
$100
Health Insurance
$100
$100
Gym
$10
$10
Groceries
$350
$400
TV Streaming
$72
$80
Extra Debt Payment
$50
$100
Other
$0
$0
Monthly Savings
Planned
Actual
Retirement 401K/IRA
$300
$300
High Yield Savings
$108
$200
Other Savings
$0
$0
Final Thoughts
The example zero-based budget above shows the average single blue collar workers monthly income and expenses. This will not work for everyone, but this is a good reference in getting started on your own. Notice how the planned column is different from the actual column. It will take time for you to understand your monthly income and expenses, but with practice and consistency, you will be a pro in no time. Understanding your budget will help you be able to make changes based on your short- and long-term goals. If you are saving for a down payment for a house, you may find a way to cut some costs in certain areas. Maybe you are almost done paying off your truck loan which will free up $300 for you to save for something else. There is no “one size fits all”. It’s about understanding your goals and finding the best pathway to achieve them.
