Basics of Budgeting with Mutual Savings Credit Union (Part 2)

Note: To help members gear up for 2013, Mutual Savings Credit Union is beginning a 5-part series of web posts that will help you understand the basics of budgeting. All of this information is made available for free thanks to MSCU’s partnership with brass|Media. Be sure to check out Mutual Savings’ BRASS website for additional tips on financial matters.

Creating a budget doesn’t mean you can’t spend money, so don’t stop reading yet. Most people cringe at the word “budget,” but it really can be a comforting tool to ensure your money is in order. Essentially, a budget is a plan for how you will spend your cash. It can help you understand where your money goes–not to mention how to streamline your spending to save a little extra. Part 2 of our series pertains to determining your fixed expenses.

STEP TWO: FIXED EXPENSES
Now that you’ve determined how much income you have to work with, it’s time to figure out your expenses. Start by making a list of all your fixed expenses — bills or payments that are the same amount (or close to it) each month. Don’t forget:
- Rent
- Mortgages
- Loans (education, auto and others)
- Heat, electric, water, and other utilities
- Cable TV and Internet service
- Insurance (health, auto, etc.)
- Groceries
- Gas, fares or other transportation expenses
- Childcare
- Pet expenses
- Credit card payments
- Savings

Your fixed expenses tell you a lot about how you spend your money. They can be a big indicator for the rest of your budget, and determine how much you have left to spend or save each month.

Watch for information about Part 3 on Mutual Savings Credit Union’s Facebook and Twitter pages!

Be sure to go back and read Part 1!

brass|MEDIA Inc. licensed content is provided with the understanding that the publisher, copyright holder and organizations distributing the magazine are not rendering investment, financial or other professional advice. Investment and other financial decisions depend on each reader’s individual facts and circumstances. You should not make decisions based on information contained in licensed brass content without the advice of a qualified professional.

This entry was posted on Tuesday, December 25th, 2012 at 3:21 pm and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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