Anyone earning fixed incomes needs a personal budget plan. Or I would much rather call it a spending plan. It emphasizes proper spending, which means you need to have a plan even before you open your wallet and handing your card to the cashier.

Here’s a simple step-by-step guide to setting up your customized personal budget plan:

First, list your fixed, unavoidable expenses in a spreadsheet and put the dollar values you are committed to paying each month for each item. That means rent or mortgage amortization, homeowner’s fees, all out-of-pocket insurance fees, tuition fees, etc. Remember we’re talking about fixed and unavoidable, so your gym membership fee isn’t part of this definition.       Continue Reading