OK so how many people especially those whom draw SSDI are able to afford a decent living and still able to put away a few shekles for a rainy day ? not many i would guess well there is an answer and i certainly am not the first one to discover this it’s called Living In the Philippines ! where i know for a fact that you can rent a decent place to live for about 100-150 US dollars a month and enjoy cable tv, broadband internet, electricity, water and LPG gas for less then 350.00 US a month. I know this because that was my wifes budget and she actually lived pretty good supporting her two sisters going to school and supporting both of them in school. ok so i helped a little, but that is just one more reason why i am excited to learn the lifestyle of the filipino. not flashy or glam hollywood but what we would consider here as lower to middle class living here in the states and thats 350.00 per month ! one thing you have to consider when putting together your budget though is you will now have to pay for your medical needs and supplies out of your pocket but there you can go to a pharmacy without a prescription for what you need. And if worse comes to worse you can always have a package shipped to you fed ex in about 3 days here is a simple to calculate a budget
Building a Budget
Step one: add up your income
To set up a monthly budget, you need to determine how much take-home pay you get on a regular basis. If you get paid once per month, this one is easy – it’s the amount of your check that you “take home.” If not, you’ll need to do some math.
If your check does not come monthly, use the following chart:
For weekly checks, multiply by 4.333
For every two weeks checks, multiply by 2.167
For twice a month checks, multiply by 2
For irregular annual income, divide by 12
You also want to make sure you add in other sources of income, such as interest income, alimony, child support, rent, or other payments. You should add all of these sources into your plan, as well.
Step two: estimate your expenses
Here is where you write down what you think you’ll be spending in the category areas. Here are some sample categories. You can change these to whatever works for you.
Housing
•Rent or Mortgage
•Property Taxes
Food
•Groceries
•Restaurant Meals
•Lunches at Work
•School Lunches
Utilities
•Electric
•Gas
•Telephone
•Long Distance
•Water
•Garbage
•Other
Personal
•Prescriptions
•Laundry / Dry Cleaners
•Hair Care
•Clothing
•Toiletries
Family
•Medical / Dental / Vision
•Pet Food / Supplies / Veterinarian
•Child Support
•Alimony
•Day Care
•Baby Sitting
•Children’s Allowance
•Parent Support
•Other
Basics
•Furniture
•Appliances
•Linens
•Utensils
•Tools
•Home Cleaning / Repair Supplies
•Other
Transportation
•Car Payment
•Gasoline
•Oil, etc.
•Repairs
•Tires
•Registration / Inspection
•Public Transportation
•Parking
•Other
Insurance
•Car
•Life
•Property / Casualty
•Disability
•Renter
•Burial
•Other
Recreation and Entertainment
•Hobbies
•Vacation
•Shows / Movies
•Sporting Events
•Dining / Entertaining
•Club Dues
•Alcohol
•Tobacco
•Lottery Tickets
•Reading Materials (Books, Newspapers)
•Cable TV
•Other
Gifts / Contributions
•Church / Synagogue
•Charities
•Birthdays
•Holidays
•Weddings
•Other
Savings
•Regular
•Occasional
•Retirement Contributions
•Investments
•Bonds
•Other
Miscellaneous
•School Tuition / Dorm / Apartment / Supplies
•Union Dues
•Professional Fees
•Lessons
•Household Business Expenses
•Legal Fees
•Installment / Credit Card
•Checking Account Charges
•Other
Taxes (This would be for income other than your check if you’re using net payroll numbers.)
•Income Tax
•Social Security
•Medicare
•State Taxes (not sales tax)
•Other
(If you’re not paying the full balance on your credit cards each month, be sure to keep track of how much you’re charging as well as how much you’re paying and how much interest is being added to the unpaid balances on your accounts.)
Step three: figure out the difference
After you’ve created your budget, you need to keep records of your actual income and expenses. This information helps you to understand any “budget variances” – the difference between the amount you budgeted and what you actually spent for the month, or time period.
Step four: track, trim and target
As you track your monthly expenses, you may need to trim expenses. Some expenses are more easily trimmed. For example, you need to make the house payment and get groceries, but you may be able to go without seeing that new movie. Cutting back is usually a better place to start than cutting out.
If your budget is realistic and if you use it to guide your expenses, you’ll be better prepared for emergencies – other unexpected costs. You’ll also be better prepared for a financially secure future.
