I pay my bills my bills are paid4/19/2023 ![]() ![]() When you have a sizable emergency fund and can afford to spend more, you could always go back to driving your dream car.Īnd hey, take this piece of advice from me. If this decision is tough to make, consider it a temporary solution. However, if the auto loan, insurance, and running costs take a chunk off your income, you should consider a cheaper alternative. Trading in your car is probably a very hard decision to make, especially if you have sentimental attachment to it. Recommended Financial Geek Article: 18 (Uncomplicated) Smart Money Moves For Your 20s 3. If you have family, you need to sit them down and discuss which subscriptions to remove from your monthly bills.īy the way, I’m not crazy, I’m not talking about Netflix here of course. The decision to let go of some subscriptions and membership fees is easier for people living alone. How often do you use streaming services that cost you hundreds of dollars annually? You should cancel those that you don’t use often. Rather, you should just reduce the frequency. This doesn’t mean completely abandoning the things that give you pleasure. For example, if you enjoy fine dining and you do it at least three times a week, I’m sorry, it is time to make a change. Think about the things you do in your life that you consider necessary, yet they are not. Oo and Mint is completely free by the way! 2. Check out my article here to learn more about them. I personally use an app called Mint to help me track all of my monthly bills and spending habits. Scary I know, but the bottom line is – if you are spending too much, you need to lower your bills. Once you have everything listed, compare your income to your expense to see what percentage pays your bills. How much does your food, mortgage, auto loans, insurance, subscriptions, groceries, and fuel cost you each month? The first step to reducing your monthly bills is to know where your money is going. Track Your Monthly Bills on a Budget Spreadsheet Here are tips for reducing your monthly expenses. While increasing your income is ideal, it doesn’t happen overnight, but you can actually reduce your monthly bills pretty quickly. You either increase your income or lower your monthly bills. ![]() If you are having difficulty saving 20% of your income, you have one of two options. This is part of Dave Ramsey’s 7 step approach to financial freedom and while I don’t agree with everything he says, I really do like these steps. My recommendation from there would be to completely pay off all your debts, set aside an emergency fund of 3-6 months worth of expenses and then starting investing for retirement. If you can manage to have 20% of your after tax income saved after all of them that’s really great. ![]() Then, aim to reduce other monthly bills, like food, groceries, and subscriptions. ![]() But first, pay bills that you can reduce, like your mortgage or car insurance. And while you may be in a better position than someone who goes into debt to pay bills – if disaster strikes, you’re likely going to find yourself in a whirlpool of debt that is extremely hard to get out of.Ī good amount to have left over after bill payment is at least 20% of your after-tax income – if you can save more, even better. And I’m assuming you don’t want me to see that!īut one thing I do know is that if all your money is spent on paying your bills, then you are simply living above your means. It is impossible to discuss money management without looking at your income vs expenses. What Is a Good Amount To Have Left Over After Bills? The rest of this article will discuss other topics related to budgeting and how to ensure you have money left after paying your bills. The first half of your money should cover bills that fall under “needs”, while the remaining 50% can be split between wants (30%) and investments, savings or debt repayment (20%). Several budgeting ideas have been put forth, including the 50/30/20 rule, which classifies your bills according to needs, wants, and savings, respectively.īut how much should remain once you pay all your bills?Īfter paying your bills, you should have at least 50% of your money left. Personal finance management is critical if you want to lead a comfortable life. ![]()
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