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Budgeting in Your 30s and 40s

Each of us has many financial goals like buying your dream home, saving for a comfortable retirement, or paying for education expenses. To achieve all these we have to do set up and stick to a budget. First of all we have to know Where to spend, to know our Financial Goals and last task is to track our spending. Thats why Budgeting in your 30s and 40s is important. <br>http://profinanceblog.com/budgeting-in-your-30s-and-40s.html<br>

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Budgeting in Your 30s and 40s

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  1. Presented By: Profinance Blog Budgeting in your 30s and 40s

  2. Index: • Why budgeting in your 30s and 40s is Important? • Do You Think Budgeting Is Hard? • Know Where You Spend • Know Your Goal • Track Your Spending • What And Which Are Fixed Expenses? • What And Which Are Variable Expenses? • How Can You Saving For Future? • Budgeting in Your 30s and 40s is Worth the Effort • Author Bio

  3. Why Budgeting In Your 30s and 40s Is So Important??? If you want to be able to live an enjoyable lifestyle while accomplishing financial goals like buying your dream home, saving for a comfortable retirement, or paying for education expenses, you need a budget

  4. Do You Think Budgeting Is Hard? No…… Budgeting doesn’t have to be hard. You simply need to know the three main parts of how to set up and stick to a budget.

  5. The Main Parts Of How To Set Up And Stick To A Budget 1. Know Where You Spend 2. Know Your Goals 3. Track your spending

  6. Know Where You Spend The first step in setting up a budget is to know where to spend? In order to know where you spend, you can use an Account Aggregation Tool such as, • Mint.com • Personal Capital You also review your spending by- • collecting your bank account statements. • credit card statements.

  7. Reviewing spending habits can be a little painful. Many people feel guilty about not knowing what they are spending their hard earned money on. Just know that this is a very important step to get your spending in check. Being able to see where your money has been going will allow you to actually set realistic goals of where your money should be going in the future.

  8. Know Your Goal The second step in setting up your budget is to know your goals. For example, do you want to be able to continue to take vacation? Are you trying to pay off credit card debt or set up an emergency savings fund? Do you want to save more for a long-term goal such as retirement, or save up for a new house or car? Knowing these goals will allow you to be able to see the big picture about how you’d like to use your money. It will help you actually stick to your budget.

  9. Track Your Spending The third step in budgeting is to be able to track your spending. People sometimes dread this step and have problems sticking to it. The easiest way that I found to be able to stick to a budget is to put your expenses into three categories -: • Fixed expenses • Variable Expenses • Saving for your future

  10. What And Which Are Fixed Expenses? These are things that you have already committed to paying, such as a • Mortgage payment • Rent • Student loans • Monthly bills • Expenses that are relatively the same every month.

  11. What And Which Are Variable Expenses? These are things like - • Shopping • Eating out • Groceries • Entertainment • Anything else that you might or might not spend money on each month.

  12. How Can You Saving For Future? Instead of trying to save whatever is left over at the end of the month, having a goal for this allows you to set up automated systems so that you are paying yourself first.

  13. The best way to track is to look at your past spending and then set a goal for your variable spending that is within 10% to 20% of your past spending. Set that variable spending target to come out of a different checking account, go onto its own credit card, or put it on a prepaid spending debit card. This is essentially like giving yourself a “Safe to Spend” allowance every month. If you have money left over at the end of the month, it rolls over to the next month.

  14. Giving yourself a “Safe to Spend” allowance allows you to really focus on being intentional on what you spend your money on from a month-to-month basis. It also allows you to quickly see if you are able to stick to your variable expenses target amount. You can always try it out for one to two months and see if you need to adjust your goal number for variable expenses. Once you feel comfortable with this number, you can set up all of your savings to be automatic and you will have your variable expenses completely separated from the rest of your money.

  15. Budgeting in Your 30s and 40s is Worth the Effort Going through these three steps might take a little bit of time and some effort, but it will allow you to take control of your month-to-month financial situation, and allow you to get on track with reaching your financial goals much more quickly.

  16. Authors Bio:Tina Roth is a personal finance writer and educator. In addition to being the editor at her own Finance Blog, she is a contributing writer to many other online finance blogs. When she's not working on her budget spreadsheet or looking for topics to write about, you can find her playing with her kids or doing her house decoration. To reach her and her Personal Finance related Blogs you can visit here : http://profinanceblog.com.

  17. Thanks 

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