{"id":11718,"date":"2018-02-02T14:04:59","date_gmt":"2018-02-02T19:04:59","guid":{"rendered":"https:\/\/www.bumc.bu.edu\/osfs\/?page_id=11718"},"modified":"2023-11-07T16:20:27","modified_gmt":"2023-11-07T21:20:27","slug":"budgeting","status":"publish","type":"page","link":"https:\/\/www.bumc.bu.edu\/osfs\/flp\/budgeting\/","title":{"rendered":"Budgeting"},"content":{"rendered":"<div class=\"responsive-video responsive-youtube\"><iframe loading=\"lazy\" title=\"Budgeting\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/6Ib-bdko5cE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/div>\n<p>\u201cWhere did all my money go?\u201d If you find yourself asking that question at the end of every month, it\u2019s time to get your budget in shape. Don\u2019t have a budget? No problem!\u00a0It\u2019s easy to get started. Once you\u2019ve got the hang of it, your finances should be easier to manage\u00a0and you\u2019ll have a better chance of achieving your short- and long-term\u00a0goals.<\/p>\n<p><span>Our\u00a0<\/span><a href=\"https:\/\/www.bumc.bu.edu\/osfs\/resources\/flp\/monthly-budget-sheet\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Interactive Monthly Budget Sheet<\/strong><\/a><span>\u00a0can help you create healthy financial goals and more effectively monitor your spending.<\/span><\/p>\n<p><b>Step 1<\/b><b>: Figure Out Your Goals<\/b><\/p>\n<p>What are your dreams for the next few months? How about\u00a0the next few years? Are you planning to further your education, get a new car or buy your first house?\u00a0Write down\u00a0the plans that are the most important to you, along with a realistic\u00a0guess\u00a0of how long\u00a0it will take you to get there. Keep this list handy, we\u2019ll return to it\u00a0in another step.<\/p>\n<p><b>Step 2:\u00a0<\/b><b>Calculate Your Income and Expenses<\/b><\/p>\n<p>In a budget, your monthly income is the amount you take home in each paycheck (not your total annual salary), as\u00a0well as other amounts\u00a0you may receive regularly, like\u00a0freelance income,\u00a0investment\u00a0dividends and interest.\u00a0That\u2019s what you\u2019ve got to spend.<\/p>\n<p>Next, add up\u00a0your regular monthly expenses. Include\u00a0the cost of housing, utilities,\u00a0childcare,\u00a0phone and Internet service, food, insurance,\u00a0and transportation costs, and any other regular bills.\u00a0Next come the discretionary expenses, or those that are optional or flexible.\u00a0Your discretionary items include\u00a0entertainment, dining out,\u00a0vacations, hobbies, etc. Don\u2019t forget to anticipate costs that aren\u2019t monthly but pop up regularly, like\u00a0car maintenance, home repair and holiday spending.\u00a0To refresh your memory, review your\u00a0bank statements and receipts to identify expenses you may have left out.<\/p>\n<p><b>Step 3: See What\u2019s Left<\/b><\/p>\n<p>Once subtract your monthly expenses\u00a0from your monthly income, it\u2019s time to decide how to spend what\u2019s left.\u00a0Look back to\u00a0the goals you identified in Step 1.\u00a0Let\u2019s say your income is $3,000\u00a0a month and your expenses are $2,600. With the\u00a0remaining $400,\u00a0you could\u00a0save $100 each month for a new home, and\u00a0deposit another $100 in a tax-advantaged retirement savings account. Whatever your choices, your budget can help you take control of your financial future.<\/p>\n<p>If your monthly expenses are more than your monthly income,\u00a0you\u2019ll need\u00a0to revise\u00a0your spending habits so you can live within your means.\u00a0Review your list of discretionary expenses and see if it\u2019s possible\u00a0to cut back by, say, eating\u00a0out less\u00a0or spending\u00a0less on vacations.\u00a0This type of assessment and spending readjustment can help you enjoy the money you have without worrying about running up debt.<\/p>\n<p><b>Step 4: Monitor Your Budget<\/b><\/p>\n<p>Your income, expenses and spending habits will change over time, so it\u2019s important\u00a0to monitor your\u00a0budget.\u00a0Ask yourself:<\/p>\n<ol>\n<li>Am I still following it?<\/li>\n<li>Are there any revisions\u00a0needed based on\u00a0other changes in my life?<\/li>\n<\/ol>\n<p>The overall goal is not to worry about everything you spend, but to be aware of how much you have available to spend.<\/p>\n<p><b>Best Practices\u00a0<\/b><\/p>\n<p>Budgeting doesn\u2019t have to feel like a chore. Here are some ways to make\u00a0budgeting easier and more effective:<\/p>\n<ul>\n<li>Make it a team effort by getting the whole family involved.\u00a0Explain the importance of budgeting and ask for ideas on cost-cutting and other helpful steps.<\/li>\n<li>Don\u2019t get started on your budget at a time when it\u2019s going to be\u00a0difficult\u00a0to stay disciplined. Begin in January rather than\u00a0right before\u00a0the holiday spending season\u00a0or right after a vacation. That way you won\u2019t be\u00a0discouraged if you bust your budget in the first month.<\/li>\n<li>Use the system that\u2019s best for you, whether\u00a0on paper or\u00a0using\u00a0budgeting software.<\/li>\n<li>Reward yourself for a staying on budget\u00a0by\u00a0indulging in an\u00a0inexpensive splurge.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>\u201cWhere did all my money go?\u201d If you find yourself asking that question at the end of every month, it\u2019s time to get your budget in shape. Don\u2019t have a budget? No problem!\u00a0It\u2019s easy to get started. Once you\u2019ve got the hang of it, your finances should be easier to manage\u00a0and you\u2019ll have a better [&hellip;]<\/p>\n","protected":false},"author":13752,"featured_media":0,"parent":9486,"menu_order":2,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/pages\/11718"}],"collection":[{"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/users\/13752"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/comments?post=11718"}],"version-history":[{"count":7,"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/pages\/11718\/revisions"}],"predecessor-version":[{"id":14403,"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/pages\/11718\/revisions\/14403"}],"up":[{"embeddable":true,"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/pages\/9486"}],"wp:attachment":[{"href":"https:\/\/www.bumc.bu.edu\/osfs\/wp-json\/wp\/v2\/media?parent=11718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}