If you live in Canada’s far north or in a city where homes are very expensive, you may have to cut back more than an average Canadian would in the “Food” or “Housing” categories in order to afford your higher living costs. Spending more in one category may mean that you’ll have to cut back in another category to make your budget balance. Write down each normal paycheck for you and your spouseand don’t forget any extra money coming your way through a side hustle, garage sale, freelance work, or anything like that. Life is all about choices, but you can’t choose the maximum amount in all spending categories. The first step here is listing your incomeaka any money you plan to get during that month. These guidelines are only recommended ranges. If you live in Mississippi, then you could expect to get by on an annual salary of just 54,933, based on estimated housing costs of 9,009 and food costs of 8,822. You may also notice that if you spend the maximum amount in every category, you’ll exceed 100% of your income. Having a budget helps you manage your money, control your spending, save more money, pay off debt, or stay out of debt. ![]() So technically, there are some people who live in a ‘single-person household’, but they don’t really live alone. It’s important to know there is nothing wrong with exceeding this limit as long as your budget balances (your expenses don’t exceed your income). Making a budget is a key piece of a strong financial foundation. Single-person households include those where a person lives alone in an individual housing unit, but they also include people who live independently as lodgers in a separate room within a larger housing unit with other occupant. However, if you happen to have young children in daycare, have high education costs, take nice vacations, tithe, or have hobbies or recreational interests that aren’t cheap, you’ll quickly exceed the suggested maximum for this category. The guidelines suggest you spend 5 – 10% of your income in this category. The category in these guidelines that people will most commonly exceed is the “Personal & Discretionary” expense category. Don’t rely on credit for these unexpected expenses. Food consumes around 20 of a typical household’s budget (more than we spend on housing). You’re allocating some money towards savings (savings are absolutely necessary for life’s many unexpected expenses. However food needs vary by age and gender and so will food budgetsfor example, an active young man can burn 50 more calories than the average person and would therefore spend more on food.You’re not spending more than you earn, and.If finances aren’t strained in your household, you can choose to be more relaxed and go beyond the guidelines in areas as long as you’re careful to do two things: ![]() These guidelines have been created for someone who really needs to put together a tight budget. ![]() How to View These Budgeting Guidelines to Get a Hold of Your Spending Habits
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