Making a Budget

If you’ve never made a budget before, this is a great way to start! Put in your income and expenses to see where money is going in and coming out every month!

My Monthly Budget Calculator

Managing money means creating and maintaining a monthly budget. With this free budget calculator, you’ll have an analysis of how your monthly finances should be budgeted. Making the most of your income is made easy when you have a clear understanding of your finances, and knowing how you can change your budget to stretch it as far as possible comes with its own set of benefits.

With the Monthly Budget Calculator, you’ll calculate what you should be spending each month based on several variables. Fill out the information below with your income and costs to get a better idea regarding how you should budget your finances.

If you need help setting up your monthly budget, reach out to our experts.

How To Budget Your Take-Home Income With A 50/30/20 Budget

First, you’ll need to know your take-home income. Once you have a thorough understanding of how much money you have coming into your residence, you’ll want to take 50% of that and put it towards your necessities, push 30% towards the things you want, and place 20% into your savings. Here is a more in-depth explanation of how you should divide your take-home income:

• Monthly After-Tax Income. This is how much you take home once you have paid your taxes and minus the cost of any payroll deductions needed. Make sure to add on any costs relating to your salary sacrifice contributions, health insurance, and any other automatic savings to make sure this number is correct.
• Half Of Your Income Spent On What You Need. Unavoidable expenses are considered necessities, meaning you’re going to have to spend this money every month. This is the part of your budget that will pay for your basic costs, including but not limited to insurance, transportation, housing, and food.
• 30% Of Your Income Spent On What You Want. Your wants are the extra expenses that you spend money on to enjoy yourself and have fun. These costs will include travel, memberships, extracurricular activities, entertainment, and more.
• 20% Of Your Income Should Be Used To Resolve Debt/Add To Savings. Resolving debt ensures you won’t pay interest on what you owe for longer than you have to. Over time, you’ll pay off your debt and eventually, you’ll be able to save money without spending money covering interest. Savings are important because when you save money, you’re building your funds to ensure you aren’t forced to take on any debt in the future.

Understanding how you should be budgeting money is the only way to ensure your finances are being spent as efficiently as possible. While going over a budget is always a possibility, having a budget in place will help you keep better track of your finances.

Want to know how you should be spending your money? Learn more about budgeting by reaching out to our experts.

Unsure of how you should begin creating your budget? Contact us for the insight you need. We’ll help you track your spending and figure out where value can be added.