2024 budget review
Year has reached its final point which means time to go over the budget for the year.
The full budget for the year is 50k which so far $54,087 is spent, so we are a bit over budget. We divide our budget into 3 main categories which you can find below with the amount of remaining budget: MUST -> 40% NEED -> 50% WANT -> 20%
Which shows what part of the budget caused being over budget in this year😅 We should spend less on WANTs the rest of the year or risk going over budget.
Out of the remaining $54,087 $ 24,000 is planned where it needs to be spent on (things that are easily plan-able like association fee, mortgage interest, insurance and etc) so $30,087 is left to spend on unplan-able things (like groceries, restaurants, fuel and so on)
How about you? Do you follow your income and expenses? How deep? What have been the trends you have noticed? Would love to hear your thoughts and numbers. And feel free to ask any questions you may have so we can go deeper into numbers.
As the year concludes, assessing your budget is crucial for financial health. The typical approach involves categorizing spending into 'Must', 'Need', and 'Want', allowing clear visibility on where money is allocated. Many individuals find that they exceed their 'Want' expenditures, underscoring the importance of prioritizing needs. To correct spending habits moving forward, consider creating a more aggressive savings plan. Also, incorporating unexpected costs, such as sudden home repairs or health-related expenses, is wise for future budgeting iterations. In addition, utilizing budgeting tools or apps can aid in tracking your weekly and monthly expenses, making it easier to identify spending patterns. This can help in setting realistic goals and adhering to them. You might even consider joining community forums or groups focused on personal finance, where you can share insights and learn from others' experiences. Ultimately, thoughtful engagement with your budget not only fosters accountability but also empowers you to achieve financial stability in your day-to-day life.
We personally have a weekly budget that we stick to that allows us to put a decent chunk into savings with every paycheck. I'm a SAHM so we are a one income household, but it works for us.