As I discussed in the past, Savings are an essential part of debt management. Remember Savings are 20% of your disposable monthly income. With it you build a reverse pyramid. Stage one is small. You save $1,000 to place and keep in your checking account to provide flexibility. This helps reduce worry each month and…
The simple formula for creating a budget is this: take your gross monthly income and subtract your taxes. The result is your disposable net monthly income (DMI). Allocate 50% of that money to your Bare Necessities, 30% to your Wants and 20% to your Savings. This is the basic plan for long term budgeting of…
So far you have calculated 50% of your disposable monthly income (gross income after taxes) for Bare Necessities which pay for the basic expenses you need to live. Many of us are spending too much in this category and in future Blogs I will discuss how to adjust down. But for now to get an…