PERSONAL BUDGET SAMPLE TV

'That's going to require you to send in more than just your minimum payments,' says Fernández Paulino. However, if you find yourself with extra money in your checking account, this might be the perfect time to start paying off those credit card balances or other debt. 'That's your minimum credit card, student loan and car payments.' Set aside enough money in your budget every month to pay your minimum debt payments, says Fernández Paulino. Before you make a purchase, ask yourself: Do you 'need it, love it, like it want it?' Make sure the item you're buying is something you need or something you know will bring you lasting joy. You can also use categories to keep your priorities straight, said personal finance educator Tiffany Aliche in a 2020 interview with NPR. After a predetermined time (like a week or a month), if you still want that thing and it fits into your budget, go ahead and buy it. To avoid the temptation of impulse shopping, make yourself a 'buy list,' financial planner Paco de Leon told NPR in 2022. You can save on entertainment by borrowing books, video games, movies and more from your local library.

PERSONAL BUDGET SAMPLE TV

These are purchases that are desirable but unnecessary, such as streaming TV subscriptions, gifts or vacations.

Now take a look at how you spend your money on discretionary expenses and create a budget for those items.

To save on clothes, buy secondhand, or mend your existing garments. Try meal prepping, which allows you to buy food in bulk for a lower cost. Check your grocery store for coupons and discounts. Set a target on how much you want to spend on these must-have items - and take action to stay on track. 'Those are things you need for your life but vary in cost every month' - like food, gas and electricity. Next, identify your variable expenses, says Fernández Paulino. Or maybe you're paying for something you could negotiate down or shop around for, like car insurance or cellphone service. To save on housing, consider living with a roommate or moving to a cheaper place (although, if you relocate to a place farther away from the city, factor in transportation costs). 'They're harder decisions to make, obviously, but they give you more bang for your buck.' They're also often the biggest expenses in your budget, so cutting back on these items is 'going to save you so much more money,' said Kristin Wong, author of Get Money: Live the Life You Want, Not Just the Life You Can Afford, in a 2019 interview with NPR. That's 'anything that's the same amount every month, like your rent or mortgage, car insurance, phone bills and utility bills,' says Fernández Paulino. If your proportions are out of whack - say, you're spending way too much of your income on basic living expenses - you may need to slash some of your fixed expenses.

Twenty percent should go toward savings and paying down debt. Thirty percent should go toward discretionary expenses like entertainment and clothes.

Fifty percent of your take-home income should go toward basic living expenses like housing and groceries. Many financial experts advise people to allocate their budgets using the 50-30-20 method. Life Kit Need a New Year's resolution? Here are 50 ways to improve your life in 2024 Create a balanced budget

Personal budget sample