Once you finish listing out the categories, you’ll need to figure out how much you’re going to spend on each of them. If you’re not sure how much money you should put toward a particular category, look at recent bank statements and receipts—that will give you a good idea of how much money you’ve been spending in each area. And don’t forget to plug the number you got from step one into your “house savings” category! Let’s go back to our example of the married couple who each makes $50,000. Here’s what their home budget might look like after completing this step of the process.
As you probably noticed, they’re currently planning to spend more money than they actually make. We don’t want that! Luckily, the next step will help them (and you) get back on track.
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