14 Jul 2017   /   0 comments

How to Budget Monthly

Paul

calculator-calculation-insurance-finance-53621Joining the adult world can be a stressful task. Suddenly, bills are piling up and you are finding it hard to pay them while trying to enjoy your young adulthood. Maybe you’ve been a part of the adult world for a while now, but an unwanted expense has suddenly ruined your money situation you had running so smoothly. No need to worry! Learning how to budget monthly is easier than it seems.

 

TFC Car Title Loans helps people in need of money all the time. Our customers have trusted us with their loan needs for more than 20 years. With the monthly payments that our customers make, many of them result to budgeting to stay on top of their expenses. Here are some common guidelines that help our customers keep track of their money to live the lifestyles they love!

Income vs. Expenses

The first place you need to start when budgeting is your current monthly income compared to all the expenses you pay for. For your take-home pay, make sure you are using the amount after deductions and taxes, and don’t include any bonuses or tax refunds. For a month, try to track all your expenses including all the little purchases like eating out and your most recent splurge. All your expenses should fall into three categories. These three categories are also known as the 50/20/30 guideline.

Fixed Costs

These are all your necessary bills that don’t typically change from month to month. This could be your rent or mortgage, car payments, utilities, gym memberships, streaming service, and loan payments. According to the guideline, these payments together should not exceed 50% of your monthly income. This is a good place that you could trim bills. Think about subscriptions that you have and if they are really necessary right now. Maybe you could choose between cable and your streaming service.

Financial Goals

This category usually varies and is smaller than the others, but just as important. Any monthly payments or contributions that affect your financial foundation fall under this category. That could mean any credit card debt, a retirement fund (if your employer doesn’t take out money from your paycheck), or an emergency fund. This could also include a large savings if you’re planning on adding something big to your life like a house or a new car. This should not exceed 20% of your monthly income.

Flexible Spending

Your flexible spending includes eating out, groceries, shopping, hobbies, entertainment, and gas. While groceries and gas are both necessities, especially if you own a car, they both tend to vary month to month based on travel needs or how much you eat out. These funds should not exceed 30% of your monthly income. Make sure you subtract your fixed and financial categories because that will accurately reflect how much flexible spending you do. This could help you when it comes to dispersing your money between the necessary and unnecessary flexible spending.

Short-Term & Long-Term

Once you have your budget together, start to set some short-term and long-term priorities for unnecessary purchases. This can help you avoid any impulse spending. If you’re struggling with choosing, try to create some pros and cons about each priority. For example, deciding what type of priority a vacation or concert is. Don’t cut out all the fun in your life, but creating a priority list will help you have financial flexibility when it comes time to enjoying your free time.

Pinch Pennies

If you’ve come to realize that your expenses are exceeding your income or your 50/20/30 category percentages are off, then maybe start doing things differently in these areas:

  • Pack a lunch
  • Buy generic products over brand name
  • Drop premium cable channels
  • Go out to eat less frequently
  • Shop at thrift stores rather than malls

Extra Money with TFC Car Title Loans

To try and spread your income, consider inquiring with TFC about an auto title loan. We could offer you quick cash. After valuing your car, you could have money in a short time in order to help you jump start on your budgeting. Maybe you need money fast for an emergency fund? Don’t worry because our loans are no questions asked. Use your money however you may need! Give us a call today to see if you qualify for one of our Car Title Loans.

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