Tips On Budgeting
According to Statista, one of the leading providers of market and consumer data, about 42.9% of U.S. households paid income tax in 2021.
The remaining 57.1% paid no individual income tax.
During this year, about 66.9% with an income ranging from U.S.$40,000 to $50,000 paid no individual income tax.
Whichever category you fall into, reviewing and adjusting your budget once a year is considered a sound strategy.
This helps you analyze increases or decreases in income, review debts, and any changes in priorities.
As the needs of our everyday living change, our budget also needs updating.
How to live within your budget?
Look out for seasonal bargains. The best time to get a bargain is during the holiday season.
Holiday Season sales usually offer deep discounts and big savings on products that are in season.
The best shopping days are the first and the last. The first as there's a better selection and the last because the prices are often dropping.
Explore the Holiday Gift Guide below so that you are able to make informed choices.
Here are steps to managing and budgeting your finances:
1. Total up your household yearly income including salary, bonus, dividends, interest, child support, and others.
2. Make a list of your expenses under Fixed Expenses and Flexible Expenses.
Fixed expenses include rent or mortgage payments, tax, debt repayment, and any others.
Flexible expenses comprise those over which you have some control such as utilities and food.
3. Add up all the Fixed Expenses.
4. add up all the Flexible Expenses.
5. Divide each of these two by 12 (months). This gives you an idea of your monthly spending.
Salary (including all perks)
Total income =
Rent, mortgage payment
Others (such as enforced savings or accumulating funds)
Total Fixed Expenses =
Furnishings & Equipment
Automobile maintenance including gas, oil
Medical care (not reimbursed)
Dental care (not reimbursed)
Total Flexible Expenses =
Total Expenses (Fixed + Flexible) =
Total income minus Total expenses =
Related update to Holiday Season Gift Guide: Sneak Peek Into Amazon Prime Early Access Sale [October 11 & 12] For Prime Members & Tips For Non-Members On How To Benefit
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