Budget income-expenses guidelines

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Budget income expenses

BUDGET- Because of its definition, this is one of those subjects we do not like to mention. Either we budget, or we don't. The best way to understand a budget is that a budget is the summary of your income vs. expenses.


Our article "Budget income-expenses guidelines" aims to help those of us that are not in the habit of doing a check and balance of their income and expenses.  Therefore their savings, or better yet, lack of savings, keep getting them into deep water.


Guidelines are a blueprint to start structuring your finance life for a better future. We all want to have something to fall back on when times get tough (happens more than we want or care to admit!). We also know deep inside, that there are things we can do better when it comes to our money and how we use it! Therefore, employ these guidelines and set up your chart.


The best way to get a real and honest view of your finances is to keep tabs. Keep your receipts for a month on everything you do, all bills paid, take outs, restaurants, ATMs withdrawals, dry cleaners, groceries, gas, all you do for a month and then create a chart of your budget following these guidelines.



List all Income you receive -

  1. Your salary if you work Full/Part time. Any other source of revenue as side hustles or weekend gigs, as well as any work you do from home that gets paid.
  2. Total that amount.


What are your expenses?

List those type of expenditures like:

  • Rent/mortgage
  • car payment
  • credit card payments
  • student loan or loans
  • utilities: electricity, water, gas/oil, cable/the internet, phones
  • insurance payments: car, house, medical, life, long term care
  • emergency funds
  • college savings (kids)
  • retirement savings

Other expenses:

  • groceries
  • child care
  • entertainment
  • clothes
  • vacations
  • gas
  • commuting (parking, lunches)
  • deductibles and out of pocket medical expenses
  • charity, church contributions
  1. Total the amount of these two sections of expenses.


Reality check

The total of the amounts you receive as salary/income minus the total of the expenses you have each month equals your available money left after expenses. Where are you here? Do you have a surplus - money left or are you in minus? What can you do to improve your situation?

Income - Expenses = leftover money



This is the whole idea of a budget.  In other words,  a budget allows you to see where you are overspending and therefore where you can cut and give yourself more space. Take a conscious look at your finances by creating a budget.  Most importantly; stick to your budget as much as possible.

Final thoughts

From time to time is good to do a check and balance and get a real feel of where you are. Staying informed and changing your spending habits will change your future life, you will feel less stressed.


It is advised by financial professionals to keep aside 3-6 months of your monthly salary (Emergency fund). In the event that you are unable to work, get laid off, have a medical emergency, this fund will help you stay afloat. Likewise, it is important to have a savings fund. You could tap into both of these funds if tragedy or emergencies were to strike your household.


Check this site and this one, for more on the subject of budget.  If you are interested or need more information on how to set up your household finances click on the images below. Set up yourself to be successful!

What are your thoughts? Do you have a budget in place? Are you good with numbers? Leave us a comment below and share your thoughts with us.

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The article “Budget income & expenses guidelines”, first appeared at swagandsash.com. All rights reserved. 2016



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