![]() But, there will be 2 months out of every year that you receive a 3rd paycheck. On average, you’ll receive 2 paychecks each month. This means, more than likely, you will receive 26 paychecks in a year. Most people at most companies receive paychecks every 2 weeks. Paychecks can come once a month, twice a month (bi-monthly) or every 2 weeks (bi-weekly). Thanks to taxes, health insurance and several deductions – you probably make 70% of this number. People that make $60,000 think they can budget around $5,000/month. This is probably the biggest budgeting mistake I see. Tip: Just because you “make” $60,000/yr doesn’t mean you have $60,000/yr to spend. This should be used as an outline rather than a replica. If what I say doesn’t match up with your life, then adjust accordingly. Because of this discrepancy, I will have to make some major assumptions. Brian may have a starting salary of $40,000 and have $100,000 in student loan debt, while Bill may make $80,000 and be debt-free. Expenses of one 24 year old can look nothing like the expenses of another 24 year old. ![]() ![]() Major AssumptionsĮverybody’s financial situation is different. If the latter is your cup of tea, then check out EveryDollar, You Need a Budget (YNAB) or Mint. You can also review your investment portfolio and it will tell you how much you’re paying in fees. You can manage your cash flow, see where your money is going, view your spending in categories and track your net worth.I, personally, prefer the former and highly recommend Personal Capital. One is where you ensure your income (money coming in) is greater than your expenses (money going out). The other is where you watch every single dollar you spend and give it a purpose. There are two different types of budgets. Choose an appropriate asset allocation.ĭon’t over-complicate things.Save for things you want rather than relying on credit.Of the three, which do you think is the best? If you chose the last, please continue reading. Ignore them and pretend they aren’t real.The bills that mom and dad used to cover (without your knowledge) are now directed to your mailbox. The increasing inflow can be extremely exciting, but only if it exceeds the increasing outflow. The transition from college student to young professional can be one of the most fun times in your life, but it can also be a time of stress.
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