Happy New Year! It’s usually exciting to start a new year. Maybe this is the year you start budgeting and taking control of your finances. To help you on this journey, take a look at our budgeting series which follows a couple month-to-month. In the January budget example, we will review last month’s spending and set a plan for the upcoming month.
Our debt counselors always recommend budgeting to keep finances organized.
December Budget Review
Fortunately for our couple, the new year has started which means they are both gainfully employed. And even more good news- last month’s budget went very well! Here is a quick review of what happened in December.
- Gas was under by $20.
- Groceries went over by $50.
- The landlord gave them $100 off their rent for Christmas.
All in all, December was a good month for the couple following their budget. With their landlord being extra generous, they came in with a little extra cash in their pockets. This will be helpful for partner #2. They need some fancier clothes for the job. So January budget will have an increase in the clothing line.
Rundown of the January Budget Example
As a result of the new job starting and the wonderful report from last month, here is a look at the January budget example.
(The bolded items have been adjusted since last month.)
INCOME
- Salary 1: $2,700
- Salary 2: $2,100
- Extra Income from Landlord: $70
TOTAL= $4,870
MONTHLY LIVING EXPENSES
- Groceries: $600 (back to normal)
- Household Items: $50 (back to normal)
- Credit Card Debt Payment: $450 (increase)
- Clothing: $170
- Cellphones (2 phones): $100
- Internet & Cable: $75
- Rent: $1,100
- Electric: $110 (increase for colder weather)
- Gas: $60
- Trash: $10
- Auto Maintenance: $40
- Auto Insurance (2 cars): $175
- Health & Dental Insurance: $350
- Renter’s Insurance: $10
- Entertainment: $50 (back to normal)
- Netflix/Hulu: $20
- Gym Membership: $60
- Student Loan Payment: $425
- Auto Loan Payment: $175
- Vacation Fund: $0
- Pet Care: $75
- Savings & Investments: $695 (increase)
- TOTAL: -$4,800
Fortunately, partner #2 landed a job with a slight salary bump. This will help save and eliminating credit card debt. They decided to increase the credit card payment this month. Additionally, they will not save for vacation in January. However, they will add a large chunk of change to their savings account- nearly $700.
If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.
