By Jamal Jordan
Organize bills– Write your monthly expenses on a piece of paper. Include expenses such as phone bill, insurance premium, car note, fuel and food, just to name a few. Add the numbers together and divide it by four. It’s divided by four because there’s four weeks in a month.
Add hours normally work– Take the hours you normally work in a week and times it by four. Multiply that number by the hourly rate you receive then minus 17 percent tax from that number. For instance, if you normally work 10 hours a week with an hourly rate of $9, that would equal to 40 hours a month and an untaxed sum of $360. When 17 percent tax is taken out of $360, it equals to $299. Therefore, you work for a total of $299 a month.
Figure out how many hours you need to work a month in order to pay all your expenses. Let’s say you need to work a minimum of 28 hours a month to pay all your bills. That works out to be seven hours a week. Therefore, if you normally work 10 hours a week, the extra three hours should be considered savings
Define needs and wants– Things such as clothing and food can be tempting due to their attractive prices but purchase such items in moderation. Don’t simply buy a piece of garment because it’s on sale and don’t go shopping for food when you’re hungry.
Don’t credit- Use either cash or a debit when purchasing an item. Try your best to make all purchases through cash. That way you’ll be aware of how much money you have left and you’ll be able to budget better. When people use debit and credit cards, they normally keep purchasing items and lose track of the remaining balance.
Take lunch– Most people have jobs, whether it’s part time or full time. The body tends to consume more energy when the body is in motion and replenishing your energy is key. Your body reminds you in the form of hunger and it can take a subtle toll on your wallet. Coffee, lunch and snacks can add up quickly especially if you’re doing it more than twice a week.
Have separate accounts– Open a savings account and ask them not to issue a debit card to you. This way, if you really need the money, you’ll have to go through a process by physically going to the bank. Have a debit card at hand may temp you to use it.