![]() If you spend money on it, it's considered an expense. I have a great post about how to make a variable income budget work that you should definitely check out!Įxpenses include EVERYTHING you spend money on, including (but not limited to): bills, utilities, emergency or unexpected expenses, shopping (this includes Amazon), groceries, take out, you name it. Random Paychecks – If you have a tip-based, commissioned, or service-based income, you need to find an average so you aren't having to recalculate budgets every month of your life.Find Your Monthly Average – If you're paid monthly or bi-monthly, total how much hits your account (average at least 3 months to find this), and put a solid monthly number to it (not weekly!).From here on out if its not deposited into your checking account, it's not considered “monthly take-home income” in Jordan-dom. Yes, that means after taxes, insurance, withholdings, etc. “Monthly take-home income” literally means IN-come… The amount of dollars that actually hit your bank account each month. When I say “income,” that doesn't mean the income listed on your tax statements. We're finally getting to the meat and potatoes! Trust me, you don't wanna miss out on this part… FIND YOUR MONTHLY TAKE-HOME INCOME Just do what works for you and your family! ![]() I've been there.Īs we got out of debt and my husband got better paychecks, we were able to move into more of an abundance mode… So we take from the 70% and use some of that to go toward investing, retirement, and college for our kids, all while preserving the 20% savings and 10% tithing. I understand that so many of you are in that same situation and it's a huge trial. If you can afford it, YAY! GO FOR IT!įor us, until a few years ago, we wouldn't possibly have been able to live off of less than 70% because we made so little. With every tip I share, you MUST remember to make this work for you! I've had lots of comments and questions about wanting to tithe 10% AND put money toward retirement. HOW TO MAKE THE 70% BUDGET RULE WORK FOR YOU There's no need to feel guilty when you go on a vacation. If you make $1,000, $10,000, or $1,000,000… you can always easily find 70% (with help of a calculator, if you refuse to do mental math like I do).Īnother beauty with this method is that everything is covered! You have money set aside for savings or debt… for spending… for investing, retirement, or charity… you're covered! So there's no need to stress, worrying about how you'll ever get your dang credit card paid off. The beauty of percentages versus hard-nosed numbers is that budget percentages fluctuate easily your budgets will always grow or decrease with you! You'll never be lost or confused. I'll go into further detail below, but here is a YouTube video that also goes into more of our personal background and how I came to develop this method! 10% goes to donation/tithing, or investments, retirement, saving for college, etc.20% goes into savings, unless you have pressing debt (see below for my definition), in which case it goes toward debt first.70% is for monthly expenses ( anything you spend money on).You take your monthly take-home income and divide it by 70%, 20%, and 10%. I now introduce to you…ĭuhn duhn duuuuuuhn! It's simple, really. Knowing how much to spend and save makes all the difference!ĭoesn't that sound dreamy? Well, as dreamy as any kind of budgeting system can be, anyway… Let's get to it. Though we had to work hard, it didn't ruin us like our F.D. No derailing, no panicking, no living off of credit cards. Womp womp. The good news is that the 70% budget rule helped us stay on track. When Bubba and I finally saved up enough and had a stable enough income to move into our home, we were on cloud nine… until Bubba had to take a 40% pay cut a few months after closing. ![]() The 70% budget rule is a financial principle that not only works, but it will work FOREVER. With a little adjusting, this will help you throughout your life to know exactly how much to spend, save, and invest… No matter your income, debt, where you live, or stage of life. But I love you, so I'm going to share it anyway… □ I'm a bit nervous about it, for I feel once I do, no one will need me any more ( waah!). I'm going to share one of my simplest (but most effective) secrets with you. Well, the time has come to give you my secret sauce. *Note: When you click the links in this post, we may receive a commission at no extra cost to you. They want to know how to be able to afford vacations and FUN while still paying bills and being financially responsible. When I work with families or individuals, an overwhelming issue Freebs want help with is figuring out, based on their income, how much money to spend versus save. Come learn all about the 70% budget rule! Today I'm sharing a secret that has changed my life and will definitely change yours as it helps you determine WHERE your money should go. ![]()
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