Now is the time to inflation proof your Budget and Capital Budget Strategies, LLC, Austin’s Best Financial Coach, has some great ideas. Here is one:
The key to a personal budget is determining the exact amount of money you have coming in each month (“take home pay”). Sounds simple, but many of our clients could not correctly state their income.
Once you know your exact income, determine the value of your “mandatory” expenses, such as rent, mortgage, credit card and school loans, IRA contributions, utilities, cell phone, car payment, food, gas, etc. Add up these expenses, then set money aside to cover them. This is called, “Paying yourself first.”
The money left over can be used for nondiscretionary (i.e., “optional”) expenses, such as dining out, movies, concerts, new shoes and sporting events. If you find you cannot afford those $200 pair of running shoes this month, you will need to save up for them, but you must cover your mandatory expenses.
If your mandatory expenses increase due to inflation, adjust your budget accordingly. When food prices rise, but your paycheck does not, that means you will have less money for optional expenses. If you find you need or want more money to enjoy yourself, consider a part-time job, because everyone is hiring right now, work some overtime, get a roommate or become a roommate. You have lots of choices to lower your expenses.
For only $149, the Austin Money Coach at Capital Budget Strategies, LLC, can show you how to create a Budget, an Emergency Fund, set up a credit card repayment plan, determine your Net Worth and help you save for long-term expenses. This cost includes the initial session, plus one follow-up session to see how well you are doing.
You can beat inflation, but it will take sacrifice on your part. Our Austin Financial Coach can help you build a financial plan to ease the pain.