Each month everyone has income and expenses. Some expenses are more important than others, which is why it’s important to have a budget.
To live on a budget, add up your monthly income (after taxes), and add up your monthly expenses required for survival (rent/mortgage, utilities, food, gas, phone, etc.). Hopefully, your required monthly expenses are lower than your monthly income. If not, get a second job, or learn to live without heat.
Subtract your monthly expenses from your monthly income (after taxes). Whatever income is left after the bills are paid is your excess spending money. Use these funds for entertainment, donations, or whatever you see fit. But remember, these types of expenses are only allowable once monthly obligations are taken care of.
Live like this each month, and keep your excess expenses under control, and you should have no problem surviving financially. You may be able to save a little for retirement as well. Living on a budget in Chicago is possible…and smart.
If you have questions about living on a budget in Chicago or anywhere, please call us at 312-922-0495 or email us info @ source1cu.com