Fill out the white boxes in Steps 1 and 2 (do not fill in the gray boxes).
Step 1: Enter your monthly (before tax) income, and click on the "Calculate" button. Our form will automatically calculate your estimated taw withholdings and your net income.
Step 2: Enter your monthly expenses.
Your final balances will appear in the right hand side boxes.
To have the financial lifestyle you desire, you need to create a household budget and define your personal goals. Decide what you want, such as a home or a comfortable retirement, how much you need to save, and when you hope to achieve these goals.
To save more, first calculate your current finances and where you can reduce expenses to help you save more, faster. Use our form above to help you calculate a household budget and trim expenses.
Keep track of your income and expenses every month. And don't forget to calculate money you put into savings. If you are spending all your income and never have money to save or invest, you'll need to look for ways to cut back on your expenses, such as by paying off credit cards or other high interest bills.
A savings account is usually the safest place to save money while still having easy access to funds in the event of an emergency. So get busy... create your personal budget today.
Household Personal Budget: Read our latest information about personal finance.
Need more information? Read our financial and credit articles related to debt, and join our online financial newsletter.
Five Ways Spending Leads To Debt
Getting in debt does not just happen, it is accomplished with bad spending habits. Recognizing specific spending habits may save you money and less stress from being in debt later. To put an end to debts there must be an end to needless spending habits.
Five Habits That Lead To Debt:
1) Spending More Than You Make: Debts have a way of growing when credit cards or loans are used to pay bills or make purchases instead of sticking to a budget and spending only what is earned to pay for purchases each month.
2) Using Credit Cards Instead of Cash: It can be habit forming to whip out a credit card instead of using the money you earned to make purchases. At times we may want to leave money in our wallet but this can be costly later. Using plastic can make us feel like we get something for nothing, yet if you don't want to pay for it today, you probably will not want to pay for it later.
3) Using Cards to Pay Off Cards: You are not paying off debts when you use credit cards to pay off other cards or you secure a loan to pay off other loans. This is just shuffling debts and you may be creating more debt with transaction fees or origination fees.
4) Using Cards for Basic Purchases: Items like gas, groceries, clothes, entertainment, and hobbies are usually considered everyday expenses. It may become habit forming to constantly pay these with credit cards but it is a very bad habit that can quickly lead to more debt. If credit card balances are not paid in full every month, it is not a good idea to keep charging for basic expenses.
5) Using Savings or Borrowing Money: For example, if you make $2,000 per month, don't spend $2,500. It is easy to over spend and then have to withdraw from savings or borrow money. Over time the debt grows, your savings is gone, you owe money on loans, and credit card balances are high. It is too easy to spend more than you make, so get on a budget.
Debt Relief
Debts can cause mounting late fees and high interest rates so the best plan is to get debt relief as soon as possible. By ignoring debts, the amount owed will
increase with added fees. Review all details about your debts, list the loans you owe and other bills. Figure out how much you are in debt and start on a
budget. Figure how much you make, how much you need for basic living expenses, and how much you can pay
toward debts.
When you need more money for debts you must either make more money or save some from your regular income. Anytime you have a few extra dollars, put
it in an account and use it to pay down your debts. Many times consumers refinance their mortgage and get a loan to pay off debts. This can be a
good plan if you don't pay off debts and make new debts. Instead, pay down your mortgage with any extra money until
the mortgage is paid off. Don't ever risk taking out mortgage loans and risk loosing your home if you have any doubts about repaying the money.
Some consumers get debt relief by using money in their IRA (Individual Retirement Accounts) but this can have a negative effect on your future. When you
withdraw from your IRA, you can loose your tax deferred returns. If getting debt relief is beyond your expertise, consider getting a free quote from a debt
relief professional. Let them tell you some debt relief choices that you can consider. The important thing is not to delay and get
deeper in debt.
Five Ways Spending Leads To Debt
Getting in debt does not just happen, it is accomplished with bad spending habits. Recognizing specific spending habits may save you money and less stress from being in debt later. To put an end to debts there must be an end to needless spending habits.
Five Habits That Lead To Debt:
1) Spending More Than You Make: Debts have a way of growing when credit cards or loans are used to pay bills or make purchases instead of sticking to a budget and spending only what is earned to pay for purchases each month.
2) Using Credit Cards Instead of Cash: It can be habit forming to whip out a credit card instead of using the money you earned to make purchases. At times we may want to leave money in our wallet but this can be costly later. Using plastic can make us feel like we get something for nothing, yet if you don't want to pay for it today, you probably will not want to pay for it later.
3) Using Cards to Pay Off Cards: You are not paying off debts when you use credit cards to pay off other cards or you secure a loan to pay off other loans. This is just shuffling debts and you may be creating more debt with transaction fees or origination fees.
4) Using Cards for Basic Purchases: Items like gas, groceries, clothes, entertainment, and hobbies are usually considered everyday expenses. It may become habit forming to constantly pay these with credit cards but it is a very bad habit that can quickly lead to more debt. If credit card balances are not paid in full every month, it is not a good idea to keep charging for basic expenses.
5) Using Savings or Borrowing Money: For example, if you make $2,000 per month, don't spend $2,500. It is easy to over spend and then have to withdraw from savings or borrow money. Over time the debt grows, your savings is gone, you owe money on loans, and credit card balances are high. It is too easy to spend more than you make, so get on a budget.
Credit Question:
Why should I create a budget? I already know I don't have enough money to pay bills.
Answer: The purpose of a budget isn't only to see how much you make versus how much you spend, but also to see what you spend money on most; waste money on the most, and if someone is the family is wasting more than others. It's sort of like detective work. That's why a budget is much more than a piece of paper (or software) that says you make $XX dollars and currently you spend $Xx dollars.
But you may think you already know what your bills are, and what you spend money on. And you may be right. But 'little things' seem to escape us, and those little things can add up.
The daily paper and a latte, for example, can add up quickly, even when purchased only five days per week on your way to work. $1.50 for the paper, $2.50 for the coffee, and you're out $4.00 per day, $20 per week, $1,040 per year! And that's just for the paper and coffee. Do you buy a candy bar from the snack machine at work every day? Add another $1.50. What about a soda? Add another $1.00. See how all these little purchases add up?
But who wants to tote a piece of paper and a pencil with them everywhere they go, just so they can jot down purchases? Not many people, that's for sure.
Fun expense tracking
We offer free Windows desktop software (a $6,000 value) that you can download. It's very easy to use, like an electronic checkbook register. You simply input your income (deposits) and your expenses (debits) and our software stores the data for you so you can retrieve vital information. You can sort expenses, add up categories of expenses, and even use the software to help you at tax time.
Instead of hauling around paper and pencil to jot down expenses, simply retain receipts and input them into the software once a week. Just remember; however, that those small purchases (like from vending machines) typically don't provide a receipt so you'll need to make memos of them.
Is someone is your household spending more than he/she realizes? Is it you? What's eating up your income the most? Find out with our
free expense tracking software.
Payoff Bills
It takes determination and setting goals to payoff bills and they will not disappear without
both. The best way to get bills paid off is to budget and target small bills that can be paid off
first. Half the battle is knowing what bills need to be paid and a total amount on the bills you owe.
Whatever you do, don't just pay the minimum required each month or you will never get bills paid off, and you may get extra fees added each month. Pay as
much as possible every month. Try to double whatever the minimum payment is on a few small bills and get those paid off fast. If you don't have a rich
family member to loan you money for bills, make a plan to eliminate some eating out expenses or entertainment expenses and use that money toward bills.
The rewards for setting a budget and paying more on bills can help make life a bit
less stressful.
Check out your credit card statements for a credit card with low interest rates. If you have not
exceeded your credit limit, consider transferring a higher-interest balance to
the low interest credit card. When you have too many cards with high balances, at least pay a few dollars more on what is required every month. This
is the only way to payoff bills unless you consider debt settlement or debt consolidation options. If any money from savings can be used toward bills, you
may want to consider that as an option to pay off bills. With today's interest rates, it is doubtful you are earning a lot of interest on a savings account. You may want to
leave some money in the savings account in case of emergencies.
Credit Question:
Why should I create a budget? I already know I don't have enough money to pay bills.
Answer: The purpose of a budget isn't only to see how much you make versus how much you spend, but also to see what you spend money on most; waste money on the most, and if someone is the family is wasting more than others. It's sort of like detective work. That's why a budget is much more than a piece of paper (or software) that says you make $XX dollars and currently you spend $Xx dollars.
But you may think you already know what your bills are, and what you spend money on. And you may be right. But 'little things' seem to escape us, and those little things can add up.
The daily paper and a latte, for example, can add up quickly, even when purchased only five days per week on your way to work. $1.50 for the paper, $2.50 for the coffee, and you're out $4.00 per day, $20 per week, $1,040 per year! And that's just for the paper and coffee. Do you buy a candy bar from the snack machine at work every day? Add another $1.50. What about a soda? Add another $1.00. See how all these little purchases add up?
But who wants to tote a piece of paper and a pencil with them everywhere they go, just so they can jot down purchases? Not many people, that's for sure.
Fun expense tracking
We offer free Windows desktop software (a $6,000 value) that you can download. It's very easy to use, like an electronic checkbook register. You simply input your income (deposits) and your expenses (debits) and our software stores the data for you so you can retrieve vital information. You can sort expenses, add up categories of expenses, and even use the software to help you at tax time.
Instead of hauling around paper and pencil to jot down expenses, simply retain receipts and input them into the software once a week. Just remember; however, that those small purchases (like from vending machines) typically don't provide a receipt so you'll need to make memos of them.
Is someone is your household spending more than he/she realizes? Is it you? What's eating up your income the most? Find out with our
free expense tracking software.
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