First paycheck. Credit: bigburpsx3/Flickr
My little brother just graduated college in December and landed his first “real” job two weeks ago. When I asked him if he had a budget, he said “Don’t worry, Uncle Peter and [cousin] Sean already called me and told me to save money every month.” Living frugally really IS in my blood! Hehehe.
To help my brother follow through, I created a sample budget for him. The idea is to identify what will make saving money meaningful to him. In other words, it might be easier for him to save money to buy a (more…)
There is no “one size fits all” budget, which is why I’m highlighting three very different budgets below. One focuses on paying off debt, a second provides a comprehensive approach to managing your money, and a third budget is a stripped down system that takes 15 minutes to create, start to finish. Which one works for you?
The Get Out of Debt Budget
Personal finance guru Dave Ramsey has a theory about paying off debt that focuses on small successes to create momentum, instead of merely focusing on paying off your highest interest debt. Using his plan, you pay minimums on all loans except the one with the smallest balance. Knock that one out, pat yourself on the back, and move onto to your next victim. As you score knock outs, increase the dollar figure you are paying towards debt each month, building momentum as you approach your last and final challenge.
While Ramsey’s plan is mathematically counter intuitive, (more…)
