Purge.

Time to Spring clean.  That includes your budget….especially your budget.

Start with a list of the ‘have to haves’…. Rent, Utilities, Car expense, Insurance(s),  Food, Medical. You get the idea…… Anything else goes in two different columns.

The first column is for Saving. That means three different ‘boxes’…. Emergency fund, which should hold about $1,000. (more if you can).  This means, a plumbing issue, new appliance, set of tires etc….. Again, you get the idea.  This is so when you have an ’emergency’ issue come up, you have the cash to get it fixed asap.

The second ‘box’ is for Replacement Income, which should eventually hold at least 6 months of your take home income. This stays there for such a time when you have a medical issue with no more sick time, or when you get laid off, or when you have a new addition (or an elderly person) that needs you to be there for their care, etc.  Again…. you get the idea.

The third ‘box is for Retirement Fund….. it’s name says it all.  The more you ‘store away’ for that time in your life, will represent how you are able to spend your retirement years.

So,……. get started shaving the ‘wants’ off your budget.

My mantra is ‘I make myself rich by making my wants few’.