What It Means: This is the total amount of money you receive each month from all sources, including salary, freelance work, investments, or other income streams.
How to Answer:
- Enter your gross income (before taxes and deductions) to get a more accurate representation of your available budget.
- If you have multiple income sources, add them all together to get the full picture of your monthly earnings.
What It Means: Fixed expenses are regular, recurring costs that don’t change much from month to month, such as rent or mortgage payments, car payments, insurance premiums, and utilities.
How to Answer:
- List all of your non-negotiable expenses that stay the same each month.
- Examples include rent, mortgage, insurance, phone bills, and utility costs.
What It Means: A savings goal is the amount of money you aim to set aside from your income each month. This helps you plan for future financial goals like emergencies, retirement, or large purchases.
How to Answer:
- Determine how much you want to save monthly and input that amount.
- Having a clear savings goal helps prioritize your spending and makes it easier to manage your budget effectively.
Budgeting Tips to Keep You on Track
Congrats on taking the first step with our budget calculator! Now, let’s turn your budgeting journey into a strategy that works for you. Ready to dive in?
1. Give Every Dollar a Job
You’re the CEO of your finances. Every dollar should have a mission—whether it’s paying bills, saving for the future, or funding life’s little joys. By assigning purpose, you can avoid the dreaded “Where did it all go?” at the end of the month.
2. Prioritize Saving (Pay Yourself First!)
Treat your future self like a VIP. Before you splurge on that shiny new gadget, stash a portion of your income into savings. Think of it as a reward for future-you—a financial high-five for being prepared.
3. Embrace the 50/30/20 Rule
A timeless rule for budgeting: 50% of your income goes to needs, 30% for wants, and 20% for savings or debt repayment. This structure ensures you’re responsible but still have room to enjoy life.
4. Track Small Expenses (They Add Up!)
It’s the small things—coffee runs, spontaneous online shopping—that sneak up on your budget. Keep tabs on the little stuff, and you’ll notice the big difference it makes in your financial picture.
5. Set Goals & Celebrate Wins
Set clear, specific goals like paying off a credit card or saving for that dream vacation. And when you hit those milestones? Celebrate. It’s all about balance and rewarding yourself for progress.
6. Don’t Forget to Budget for Fun
Budgeting isn’t about restriction; it’s about freedom. Make sure to allocate some “fun money” so you can enjoy life guilt-free. Just remember: balance is everything.
7. Be Flexible (Life Happens)
Plans change, and so should your budget. Flexibility is key to making sure you stay on track, even when life throws unexpected expenses your way.
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Master Your Budget and Keep Moving Forward!
Awesome work! You've just taken a big step toward better financial control. 🎉
But don’t stop here. We’ve got some great resources lined up for you below. Check out these videos to sharpen your budgeting skills and take your financial game to the next level.
Fidelity Says Save This Much
Are you on track with your savings? Learn the recommended savings targets from Fidelity to ensure you're building a secure future. This video breaks down how much you should be saving at every stage of your career.
5 Types of Retirement (Coast vs. Fat)
What type of retirement suits your lifestyle? Explore different retirement lifestyles, from a laid-back "coast" retirement to a luxurious "fat" retirement. Find out which one aligns with your goals and how to achieve it.
How Much Do You Need to Retire?
Do you know your magic retirement number? Discover how to calculate the amount you'll need to enjoy a comfortable retirement. This video walks you through the essential factors and formulas to determine your target retirement savings.
