Wondering on Wednesday: Add it up
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|Wed, 06-09-2010 - 12:27pm|
On this board, we focus a lot on the monthly budget. But, do you know how much you need for a year's worth of expenses? Here's an exercise that can show you the big picture of your annual household budget.
Just add up all of your budget categories for the year. Be sure to account for expenses that vary from month to month. Or, for a quicker exercise, just start with a few major catgeories like housing and transportation.
Any surprises? Hopefully, the entire annual budget is less than your annual take-home pay.
If you don't have a written budget yet (what?!), check out the Getting Started post for a list of budget categories.