Challenge 6: Build Your Budget
It's time to build your budget! You do this by:
- Downloading A Budget That Works template(click here).
- Read through the instructions on the first tab.
- Fill in your numbers.
Something that is a little different about this budget is the concept of a Lifestyle Number. That's the amount of money you have leftover after allocating enough income to cover your budget for your short-term and long-term needs. (Lifestyle Number = Income - Monthly Expenses - Future You)
This Lifestyle Number is where all of your "wants" come out of. If you're like many of my clients, you might live in a household with a partner and kids. In this example you would decide on a fair amount to be allocated to each adult and to the family unit as a whole, use the additional Lifestyle tabs for this. You only keep track of the money you're responsible for. That means no nitpicking about how the other person chooses to spend their money! Well... as long as it's ethical, moral, and legal, that is!