I work in sales and make decent money for my age, with my monthly income varying between $3100 and $4000 after taxes. My most significant expense is my car, which costs about $1150 per month when factoring in my loan, insurance, and gas. In addition to this major expense, I have several other smaller costs, including my phone bill and credit card payments. Despite this income and the expenses I have outlined, I often find that I am left with only a couple of hundred dollars at the end of each two-week pay period. This situation has led me to realize that I want to move out and establish my own living situation, which has prompted me to consider how I can better manage my finances and avoid falling into challenging situations. I am seeking guidance on how to create a budget that reflects my income and expenses more accurately, allowing me to allocate my funds more effectively.
My biggest advice is to take a detailed look at where your money is going each month. Based on your description, it seems that you may not have a clear understanding of how approximately $2000 of your income is being spent each month. From my experience, this amount often goes towards food and other miscellaneous expenses. It is important to sit down and create a comprehensive budget. Review your bank statements to identify all your subscriptions, your phone bill, and any other recurring costs. After accounting for all your regular bills, the remaining amount should primarily be allocated for food, miscellaneous expenses, and savings. If you are planning to move out, keep in mind that a significant portion of your leftover funds will likely be consumed by rent and utilities. Additionally, spending $1150 each month on car-related expenses is quite substantial, especially when you consider that it can account for more than one-third of your monthly income at the lower end of your income range. While I understand that your income can vary, it is generally wise to underestimate your earnings when preparing a budget rather than overestimating them.
Based on my assessment, it seems that a considerable portion of your funds may be disappearing due to subscriptions that you may not be fully aware of, or perhaps from takeout and dining expenses. It is crucial to identify where your money is going and look for ways to minimize those expenditures. A good starting point would be to prepare meals for yourself instead of relying on takeout and to cancel any subscriptions that you do not actively use or need. By taking these steps, you can begin to improve your financial situation and work towards establishing a more stable budget.