{"id":1021,"date":"2014-09-27T00:00:37","date_gmt":"2014-09-27T00:00:37","guid":{"rendered":"http:\/\/bankruptcy.thompsonwedeking.com\/?p=1021"},"modified":"2014-08-26T20:37:09","modified_gmt":"2014-08-26T20:37:09","slug":"simplify-budget","status":"publish","type":"post","link":"http:\/\/www.thompsonlawsd.com\/simplify-budget\/","title":{"rendered":"How to Simplify Your Budget"},"content":{"rendered":"\"How<\/a>\n

If you\u2019re like most people, you either either don\u2019t have a budget or the one you do have is in your head and vague at best. However, you probably also know that these two methods are far from ideal. So consider the below method to create a simple budget you can easily follow.<\/p>\n

Although it\u2019s challenging, the cornerstone of this budget method is to allow only 60% of your monthly gross to cover your monthly expenses. This keeps things simple and that hard-and-fast number makes it easier to restrain yourself from letting expenses spill over into taking up more and more of your money.<\/p>\n

What becomes of the other 40%? You\u2019ll use 10% of it to fund your retirement. Having a 401(k) makes this even easier. Another 10% is used for long-term investments like stocks or mutual funds. However, if you\u2019re currently in debt, use this money to help pay that off. The sooner you\u2019re out of debt, the better and then it makes sense to use this money for long-term savings.<\/p>\n

Another 10% goes to your short-term savings. This is money that you\u2019ll eventually tap into for things like auto repairs, medical costs your insurance doesn\u2019t cover and things like holiday and birthday gifts or plans. Don\u2019t be afraid to spend this money when the appropriate times come along. That\u2019s what it\u2019s there for. Otherwise, you\u2019ll go into further debt or draw the money from other places that don\u2019t make sense.<\/p>\n

Finally, you have 10% set aside for whatever makes you happy. Go have drinks with friends, see a movie, buy that next book in the series, etc. Like the last 10%, recognize this money exists for a reason and then don\u2019t be ashamed about spending it.<\/p>\n

Unlike budget software that gives you a million different categories or versions that otherwise make putting money aside way too difficult, the above is both simple and effective. That means you\u2019ll have an easier time following it and better results for doing so.<\/p>\n

Source:<\/p>\n

10 Ways to Simplify Your Budget<\/a><\/p><\/blockquote>\n