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Budget time?


$257/bimonthly for these bills:

$92/month credit cards
$200/month car insurance
?? emergency savings??

What I'm asking is, how much should we be putting to each of these?

Biweekly, not bimonthly... sorry

Normally in a stituation like this a salary income is necessary to determine a budget?

Here are some pointers that have helped me out.:

Emergency Savings:
Open a savings and a checking account with the Bank, if they ask you if you want an ATM Card refuse it. ATM cards are just as dangerous as credit cards you will find yourself withdrawing from your account more then you should the point is to start saving.

If you are able to put 10% or more from your pay period into your savings account then do so. Any and all withdrawals should always come out from your checking account so you may want to put a little extra for just in case. do not touch your savings account only if you really really have to.

Add yourself as an expense calculate how much money you will need until your next pay check so that your not withdrawing money from your savings account and or charging on your credit card.

Credit Card:
Try to minimize in using your credit card on frivolous items if you have the extra money to pay for it then do so. You want to bring that credit card amount down as soon as possible, make a larger payment then the minimum payment. When you have succeeded try keeping your purchases on a month to month basis at an amount where you could pay it off if you had to.

CAR INSURANCE:
If you still live with your parents you may want to ask them if they could put you under their policy and pay them your portion. Shop around for the best insurance.. You may want to also do a month to month payment to cut the payments down giving you more money to put into your savings and/or credit card payment. As for the insurance payment the required charge should always be paid in full.

So you will essentially have $514 per month to put towards these bills. $200 is not something that you can pay off so take that off the total immediately you are left with $314, Pay $214 towards credit cards and $100 to emergency savings. Once your emergency savings is at $1000 put all $314 towards paying off your credit cards, once those are paid off put the $314 towards savings. On months that you have an extra check put it all towards credit cards, until paid off then savings.

Check out expenseRegister.com, http://www.expenseregister.com , it is a free online personal finance website. Once you register and login, go to the Budgeting feature, this will let you setup a monthly budget. It has good default values.
In general, I think you should save 10% of your pay for the rainy day.

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