Below Budget Two

Being below budget is important and it should be the aim. Take out a piece of paper and make a comprehensive list of expenses one has to make throughout the week or month. Next add the numbers together to come up with a total. Continue by writing ones income on the paper. Place the income dollar amount above the expense dollar amount. Here is an example:

$100.00 income
90.00 expenses

The income should be higher than the expense amount. If this is achieved, one is below budget. One can also know the amount one is below budget by calculating the two dollar numbers. Take the top number and subtract it from the bottom number.

$100.00 income
– $90.00 expenses
= $10.00 total saved

This will give one the amount one is below budget. This can be saved. When the total is negative, one has spent too much and is in debt.

$90.00 income
– $100.00 expenses
= – $10.00 debt

One can keep the top number (income) more by taking some from the bottom number (expenses) and put it on the top. Buying in bulk or preparing or providing food or extra things can also be helpful. Finally, if one employs the archer method of saving, it can also be beneficial.

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