Listing your expenses quickly helps you establish whether you have enough money coming in to cover these. Your new expenses total $1,725 per month.You add a buffer of 15% which is calculated at $225.
You estimate you spend $1,500 per month.When calculating your expenses, also factor in unexpected bills, such as unplanned car repairs.Ī good rule of thumb is to add an extra 10 per cent to 15 per cent. A forgotten bill really throws a wrench into your savings plan.
Remember that being thorough when you add up expenses is important in creating a realistic budget. Some expenses are intermittent, such as insurance payments, so to get the most accurate financial picture you can calculate an average for six months to a year. Assess your expenses by consulting your bank statements, receipts, and financial files.