Your impending move to Reno, Nevada is a chance for you to get your finances firmly under control if you find that you have been struggling to manage the wages from your Toronto caterer job. You'll have a new job, a new home to make payments on, and perhaps even a new car and a new bank account. Start your new Reno life out right by making a budget that dictates where every portion of your paycheck will go. We can help you there.
Living Space
Your rent or mortgage payments will take up the biggest chunk of your paycheck. Generally speaking you should not be spending more than 30% of your income on your rent or mortgage. You may not be able to manage this if you're a low income earner in a part time rotary valve repair job, but at least try. This means that if you make $1,000 per month you can only afford an apartment that costs about $300 per month.
Other Payments
Rent is rarely the only regular financial obligation most people are under. You might be making monthly payments on your car, on your cell phone, on your student loan, or to Fitness Toronto for your gym membership. Debt repayment such as car and loan payments should come first on the list, followed by less urgent needs like your cell phone. Alimony or child support would also fall into the "necessary" category.
Savings
No matter what your income or how many financial obligations you're under, you should always put always a portion of your income (no matter how small) into a savings account. Your savings will rescue you if you happen to lose your job at the Y strainers factory or pay for repairs if anything breaks or falls apart (such as your oven, television, or computer). Put away as much as you can afford and you'll thank yourself later.
Miscellaneous
Don't forget about those other monthly expenses. Everything you buy should be in your budget. That includes your clothes, your club memberships, your hobby supplies, gas for the car, movie tickets, newspaper subscriptions, horse fence supplies, pet food, takeout, toiletries, food -- everything. Without a proper idea of how much you spend, you can't make a budget, so spend a month tracking all of your purchases. Many expenses in this category should be cut back or eliminated if they are affecting your ability to meet your expenses in the other categories.
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