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Basics of Budgeting for Military Families

budgeting for military families

Basics of Budgeting For First-Time Budgeters

Have you ever wondered where all your monthly income went? We work hard every week and can’t seem to save anything or invest in our future. Some don’t have a budget and don’t keep track of how they spend over time.

Budgeting can be a day-to-day transformation of how you value and treat your hard-earned money. It won’t fix or solve your financial problems immediately, but it will change how you view your money and how it works for you.

Step 1 – List Income and Expenses

Step 2 – Subtract Expenses From Net Income

Step 3 – Identify Your Goals and Make Adjustments

Examples of goals would be paying off debt, saving for retirement, paying off college, building a savings account, saving for a vacation, and saving for a down payment.

50% of your income should be spent on essentials, 30% should be spent on discretionary spending, and 20% for savings and investing.

Another variable expense that gets people is fuel. Review your last few months of fuel costs and use the average amount as your monthly budgeted cost. It pays to overestimate these costs a bit if you can. It’s better to earmark a bit more upfront in your budget than to be caught short.

After completing these steps, you may be ready to set up and start your new budget. If not, you can always get financial advice from Department of Defense resources. Once you have set a budget, it’s important to review it every few months; your goals and resources can change.

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