If only money grow on trees, the world will be a huge forest! Many career- and business- driven women today have one contention: budgeting. While addition and subtraction are fairly simple mathematical operation, budgeting can be quite complicated when you don’t know what to do. This is even more so during special occasions when expenses go haywire.
To ensure that you live within your means and spend just well within what you can afford, here are some personal monthly budget tips for career women and womenpreneurs alike.
1. Identify your net income. For employed women, this means your total monthly compensation less taxes, deductions from medical and dental insurance, pension payments, and other benefits. For individuals who depend on self-employment or freelance income, a good way to determine how much you are earning is to evaluate monthly income from the last 2 quarters and find the average. For womenpreneurs, on the other hand, this will be the net amount after all total business expenses like employee salary, operational cost, electricity, and so on have been paid.
2. Determine your “fixed” expenditures. Whether working on a 9 to 5 job or working freelance or doing business—or both—you obviously know by now what bills, fees or payments are being done on a monthly basis. These can range from taxes, car or medical-dental insurance, mortgage payments, office or store lease, and so on. These expenses are usually done quarterly, semi-annually or annually. While they may not fall on the “monthly” category, it is essential to set aside certain amount each month and not lump them all into a single month deadline. On the other hand, water, electricity and gas, phone and internet as well as cable bills and other utilities at home are usually done on a monthly basis. All these ensure that you got all necessary expenses covered month after month.
3. Establish grocery expenses. While food, gasoline and other household items are usually bought on a weekly basis, it is essential to determine a monthly money bag for them. Consider listing down all food items and household products as well as fuel consumption for the last 2 months—and get your budget idea from there. Simply get the average weekly expenses and multiply by 4 to set a monthly expense.
4. Work out expenses for other non-fixed items. Think about cosmetics, shoes, clothes, magazine subscription or travel. While these may not be bought on a monthly basis, it is wise to create a budget pocket for them as well. When not used, you can always keep them and place into savings for future purposes or as emergency funds.
5. Set a contingency fund. Emergencies can happen—and often, in the most inopportune time. Some people keep at least 10% of their monthly income into a separate savings account that they get to access only as a last resort. A work of advise though always see to it that you set aside as much income as you can.
6. Now calculate monthly expenses vs. monthly income (+ contingency fund). Deduct all the essentials first. Consider prioritizing those items that will impose penalties on late payment as this will increase your expenditures. Of course, add to that also food and other consumer items needed at home on a daily basis. The key is to always come up with a positive result. If not, it is time to reassess your expenses.
7. Have fun with the extras. Don’t go too hard on yourself by having a little bit of fun when after all the necessary and contingency expenses have been deducted and there’s still some money left. Set a dinner date with your partner or a trip to the movies with kids in tow at least once a month. Have some fun with colleagues after work.
While carving a personal budget plan may sound easy, the tricky part is in doing it consistently. Monitoring one’s expenses can truly be taxing particularly to impulsive buyers. If you plan to live within your means, however, sticking to your budget goals will prove to be liberating. Luckily, there are various apps and programs nowadays to help you on this quest.
