We spend a ton of money as time passes on stuff we never really plan for. Everyone sometimes makes impulsive choices when it comes to buying and spending, and unexpected emergencies can also crop up and force us to spend more than we would want. The best way to stop these expenditures from causing serious damage to your bank account is to save and budget.
Of course, any sort of planning is work and some people just prefer to let things take their course and go with the flow. This philosophy doesn’t mean that your financial situation isn’t going to be less stressful, just that you will ignore it and hope it fixes itself. It may fix itself as time runs its course but what if it doesn’t. As your financial flexibility shrinks your headache will grow and nobody wants to be in a bad position with their money.
You may come to the realization that you might need to pay more attention to what’s going in and out of your account, and the best way to keep track of that is to budget. Budgeting is a little bit of work that goes a long way to reducing the likelihood of getting headaches in the future. It’s something every bigwig does and you will see where your money will go ahead of time so you can even plan out treats for yourself.
The best thing about budgeting when you haven’t been, is you tend to find out you make more money than you think, and you can use that money to coordinate pretty much your whole life. Life will become much more fulfilling when you know the plan you should be sticking to.
Once you start budgeting, a great way to organize things is through percentages. $300 might not seem like a lot to spend in a week on eating out, but if it happens to be 30 % of what you make that week, think about what that leaves you for the rest of your costs.
You might want to shop around for a used cars in sacramento if you really want a specific make. What you ever end up doing you are going to be happy you saved the money.
If you are trying to budget money to pay for your car, this is an expenditure that is going to take precedence over others just like your rent or mortgage. Separate payments you need to make from the ones that are not flexible or necessary and see how much that leaves you to make choices on what you’re going to spend and save.
Of course this post is ultimately about how to budget money for your car, be it a new one you are saving for, or one you already have. It is important however that you take this planning and budgeting philosophy to the other aspects of your life because it will help you live a more stress free and confident life.
If you are looking for a new car because your current one is damaged or totaled, now is a great time to sell non-working cars because now the process has never been easier. In the past it was a common chore to call up junkyards or find a private buyer. Now there are websites that make the process so much easier and modern.
35%
If you spend much of your time inside a car then you would probably want something decent. 35% of your income is a great enough slice to get you a solid vehicle that would. Say you are making the average income of $1,282 which means yearly you would be bringing around $65 thousand. Take 35% and that is $22 thousand. You could get a 4 year loan and spend $1.8 thousand a month on a nice car that you will love.
20%
If you don’t love the idea of having your car eat up so much of your monthly check, 20% of your income gives you the wiggle room you would want for your other needs which allows you to be flexible with your spending. If you want a halfway decent car, financing your expenditure in a way you spend 20% of your income on a vehicle should help you out with not over spending.
10%
Spending 10% on your car can open a ton of doors for you in other aspects of life. Say you have an expensive hobby or like to save money, 10% percent will allow you to be much more free in how you spend your cash. What you gain in financial freedom you will have to sacrifice in the quality of your vehicle. You might want to shop around for a used car if you really want a specific make. What you ever end up doing you are going to be happy you saved the money.
Any money saved from budgeting and planning of course should not be thrown away. Budget every aspect of your finances so that you can live with a healthy mindset knowing that you are safe. Saving money for emergencies and the future is a great way to prepare for whatever happens and allows you to splurge every now and then on something that will make you happy.