Budgeting 101: For the 9 to 5er (hint, it’s not just about money)

  1. Write down your 3 month historical expenses.
  2. Find out the details to your companies 401K plan.
  3. Restructure your income so you match your companies 401k plan.
  4. Add your average monthly expenses (non-negotiable’s plus lifestyle), then x the total by 8. This will show you how much money you need to build an 8 month emergency fund. Create an attainable goal say 18 months to create your fund. Take your 8 months of expenses and divide it by 18. That will tell you how much you need to put away every month to achieve your goal. Set up a bank account where you auto-transfer the same amount every month towards your emergency fund. Example: You spend $3700 a month on average. $3700 x 8(emergency fund)= $29,600. $29,600/18 (goal) = $1644 a month in order to achieve your goal.

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AJ Wolbrum

AJ Wolbrum

AJ is a Financial Freedom Coach and the founder of Beyond The Green Coaching. https://www.beyondthegreencoaching.com/