A BUDGET IS A CRUCIAL FINANCIAL SURVIVAL TOOL FOR THE POOR MIDDLE CLASS

 

The Importance of A Budget

Creating and sticking to a budget is the poor middle class financial survival tool that allows for clarity and transparency. It is crucial. The best way to start is with pencil and paper. Determine your major budget categories. Transferring them to a computerized bookkeeping program is simple. We have actually set up our computerized bookkeeping system based on the following categories plus additional subcategories. It works very well for us. But you can stay with a manual spreadsheet if you prefer.

How to set up a budget
Free Online Accounting & Bookkeeping service from www.accountingdiy.com

 

 

 

 

 

 

 

 

 

 

Setting Up Expense Categories

This is how we have been able to come up with a budget. We set up a bookkeeping system. First, we add up our income. From there, we have a clear picture of how much there is available to spend. Then we set up our expense categories. Everyone has their own profile based on their life, family and needs. These are the major categories we use:
• HOME
• FOOD
• TRANSPORTATION
• PERSONAL
• FUN, ENTERTAINMENT & VACATION

Within each of these major categories, we have set of subcategories that reflect our expenses:

HOME
• Rent
• Household
• Utilities

Budget for housing is a crucial financial survival tool
Senior Housing from https://mortgagelawyers.wordpress.com/2010/12/07/distressed-underperforming-senior-housing-projects-turnaround-management-loan-workouts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOOD
• Groceries
• Breakfast/Lunch/Snacks

A Food Budget is a crucial Financial Survival tool
Cartoon Food from Clipart kid

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TRANSPORTATION
• Auto Insurance
• Gas
• Maintenance
• Public transit

A budget for transportation is a financial survival tool
Transportation from Dreamstime.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERSONAL-HUSBAND & WIFE (EACH HAS THEIR OWN LISTING BUT WITH THE SAME CATEGORIES)
• Personal items/hobby
• Rx copay
• Medical
• Dental Care
• Supplements
• Life Insurance

A budget for the family is an essential tool for the financial survival toolkit
Man and woman on the couch from Dreamstime.com

 

 

 

 

 

 

 

 

 

 

 

 

 

FUN
• Eat Out/Celebrate
• Entertainment/Culture
• Vacation

a budget for fun, entertainment and vacation are essential for a financial survival toolkit
Island Vacation – Cartoon Island With Seagulls from 123RF.com

What’s Next?

You may find, as we have, that your expenses exceed your income. As seniors on fixed incomes, as young people working more hours but earning little money, as breadwinners who has lost their livelihood, this may be your challenge too. The additional posts in this blog series will be devoted to a solution. That solution is building and implementing your financial survival toolkit.

 

 

 

Sources & Resources

Debt Free Adventure

Beginner Bookkeeping

Debtors Anonymous

Senior Housing Turnarounds

The Viper Tool Storage Company

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