BlOw MoNeY

Good afternoon my follow Millionaire buddy in training in yesterday blog we talk about the first step in regaining your finances and learning to build a quality sheet. So it’s a pleasure to move on to set number two.

What is income goes out?
I will be going to inform you about this part of budgeting: planning how you are will spend your hard earn money. Do not be surprised if you leave out or underestimate your expenses.
It payment like your health insurance, medical bills, real estate taxes, and insurance premiums can and will sneak up on your and will wreak will havoc on the budget if you do not plan and save of them each month.

Other expenses, such as school supplies for the children or for your self, may feel like they’re not that important at the time but that really bad idea because when we do not plan for them in the budget. Either way when you have to pay for them, even when you do not have the money.

The best way to make sure you do not that you do not overlook any monthly expenses when creating your budget is to convert the large expense into monthly payments and then put them into a categorize them, along with the smaller expenses.
Keep in mind that you need to estimate some of the expenses on your monthly breakdown of the expenses list in the next few paragraphs I will show you how to set up your monthly breakdown of expenses.

Here is example , of how you can figure out what you will spend on let say medical bills for the rest of the year by looking through last year’s bank statements will help you be able to determine how much you are spent on health care wellness like check -up to dental visits, and anything that may not be cover by insurance . The example also goes for things like clothing, tuition, vacations, gifts, and home repair.

I will let you know that you feel tempting to skip the “REPLACE FURNITURE” or tempted to skip the “REPLACE CAR ” even if you have just brought a new bed or television or a new car but I encourage you to still put a little away in this area because you never know when you are going to need to replace their items.

Remember George and Kelley ‘s monthly expense breakdown from yesterday blog if you look there have to decide not to save money in the new car category. The reason for this is because George and Kelley decide to get a car payment instead of paying cash for Kelley car.
Even though they did decide to sell George new car and buy a $2,500 used clunker.
With all their other expense, they are still unable to afford to save for the next car, which will make it a lot hard on them in the long run.

I know to be true because I made the mistake of not saving for a new car when the truck went down a little over three months ago.

So under the category of a car payment, they just put their payment amount in this area.

Now in the next few paragraphs, we are going to showing you how to build your monthly break down of expenses.

Just remember to save you the monthly amount until they are due. This way you are able to avoid scrambling around, always looking for extra cash to help pay these bills on the month they need to be paid.

So after the long process of you converting the large expenses into monthly payments, you can use the cash- flow plan, or the budget, to categorize them on and your smaller expenses.
Here are some of the major categories in the Treasured Ink Blots Budget included charitable gifts, saving, housing, utilities, food transportation, clothing, medical/health, personal, recreation, and debt and BLOW.

Yes, I know that you are possibly laughing at the Fact that I just said blow and I am not talking about drugs either I am talking in a term that Blow means you are able to spend the money however you like to.

I heard some people call it mad money. rainy day money, or fun money; I prefer to call it BLOW money, in the memory of the former budget system if I had ever had one to start with, I blew it.

So now we are at that point where I am going to show you how to build your monthly breakdown of expenses payments in the monthly cash-flow plan . Then fill in what you think you need to for the other expenses and if you have any problems knowing what to budget just look through your bank statement for the three months .

You might want to start off on some paper before moving into a more permanent budget. So you are going to be your bank statement because you are going to need to know what you spend for the last three months.
and then you need to take the average amount to use that to an estimate of what you will spend this month.
Here are little tips of the trade the first couple of months you budget, you want to pay the necessities, like food and gasoline. Budget more then you think you need because you always spend more than you think you will.
Add the items within each category to get category subtotal. Then its time to figure out the grand total of your monthly by tallying the category subtotal.
Then finally, subtract this month ‘s income from the grand total. The balance must be zero and it a good idea to use a pencil when you’re creating your budget.

Keep in mind that this budget is for the current month. You can make a generic budget because your expenses and even your income may change from month to month so use pencil and I praying your expenses will decrease.

Your Monthly breakdown of expenses:

ITEM NEEDED Annual amount /12 = monthly amount

Real estate taxes
Homeonwer Insurance $720 /12= $60
Home repairs $1,200/12= $100
Replace Furniture $600/12= $50
Medical Bills $1,500/12= $125
Heath insurance $3,600/12= $300
Life insureance $840/12= $70
Diabitity Insurance
Car Insurance $1,200/12= $100
Car repair $1,000/12= $83
License/ tags $120/12= $10
Repalce care fund
Clothing adult $1,800/12= $150
Clothing children $900/12= $75
Vacations $1,200/12= $100
Gifts / Hoildays $1,500/12= $125
Other : $5,700/12= $475

So let you my follow Millionaire In Training with your break down of expenses and tomorrow I will be showing you how to build a monthly cash flow plan. And if you a looking for more money saving tips check out : /

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