After I receive my paycheck I setup my budget for the upcoming month with my personal budget planner.
The steps I take to setup my budget
1. I list my expenses
I start by reviewing my expenses in July and check if there are any changes for August.
2. Then I list my sinking funds & jars
In August I will not be using my sinking funds. So I will only add to my accounts.
My sinking funds are short term goals (1 year) that I setup at the beginning of the year. I divide the amount I expect to need and set money aside every month.
|Sinking funds||Budgeted||Total amount|
I filled my jars for August.
My jars are used for my variable expenses that I have every month. I try to not exceed this budget.
I use the bank, KNAB to keep the accounts seperate and not exceed my budget unknowningly.
3. Check my savings goals
Next to my short term goals (sinking funds) I have some medium and long term savings goals.
- My emergency fund is fully funded
- The fund to cover the costs for buying a home is fully funded
These costs are not covered through a mortgage loan when buying a home
- Downpayment for buying a rental home is ongoing