Budget Basics

<h3> Good&nbsp;budgeting equals: Making income to&nbsp;pay bills, purchase things, save for the future.</h3> <p> Budgeting is an essential life skill. However, many many of us are never taught how to do it.&nbsp;No matter what your income is,&nbsp;if managed properly you pay your bills and plan for the future.</p> <p> A Budget is a structured process. Like any recipe, it has basic ingredients, instructions, and the combination gives a clear view of your finances. Understanding the terms and their functions make the budget building easy. Shall we learn about them.</p> <h2> The Basic Ingredients</h2> <h2> Income:</h2> <p> Income constitutes any source of money you receive, whether from work, investments, allowances.</p> <p> For family budgets, every little bit counts.</p> <p> Here are some various examples of income apart from the mainstream ones:</p> <ul> <li> Grants and Scholarships</li> <li> Government Sources (Pensions, Assistance plans, Tax Refunds, Children's Credit Maternity leave)</li> <li> Child/Spousal Support Payments</li> <li> Company Pension Plans</li> <li> Retirement Plans</li> <li> Company Pension and Savings Plans</li> </ul> <h3> <strong>Monthly and Bi-weekly Paychecks</strong></h3> <p> Income generally comes in two forms. Either you get paid by the monthly system (mid-month and month-end checks) or every two weeks (or weekly).</p> <p> Most people find it hard to work with both at the same time. This budget is based on a monthly system, but YBP has one way to facilitate using the so-called Paycheck to Paycheck system. It can then function;</p> <ul> <li> with several people using the monthly system</li> <li> with&nbsp;several people using&nbsp; the bi-weekly system or</li> <li> with a combination using the monthly system and the bi-weekly system.+++<strong>see our way to handle both methods</strong>+++</li> </ul> <p> <u><strong>+++see our way to handle/combine both methods+++</strong></u></p> <h2> Expenses:</h2> <p> Expenses are costs, everything you spend money on. Budgeting means categorize all your costs regarding their nature and types.</p> <h3> <strong>Types of costs</strong></h3> <h4> Fixed Costs</h4> <p> Fixed costs are unavoidable, needed expenses that do not change or vary much in the short-term. Rent, mortgage and lease payments, some utilities, insurance, these are all examples of fixed costs.</p> <h4> Variable Costs:</h4> <p> Variable costs are expenses that vary within the short term, for the purpose of household budgeting variable costs could change from month-to-month. Examples include groceries, clothing, some utilities, and transportation.</p> <h4> Discretionary Costs:</h4> <p> Discretionary costs are unnecessary expenses (wanted) where you'll find much of your budgeting wiggle room. &nbsp;Entertainment, vacations, and luxuries are examples of expenses that are wanted, not needed.&nbsp;</p> <p> In YBP we create categories to facilitate and organize your expenses monthly to keep track of payments. In the digital era, less and less cash is used.&nbsp;Debit cards and credit card use is on the rise. Debit and credit card&nbsp;expenses are also easy to forget about. Therefore it is wise to check your&nbsp;expenses and remaining limits before going on major shopping outings.&nbsp;</p> <h3> Needed or Wanted:</h3> <h4> Needed:</h4> <p> Needed costs are self-explanatory, they are expenses that are essential for a living standard that is acceptable to your household. They fall within fixed and variable costs. Needed costs leave little wiggle room for adjustments in your budget.</p> <h4> Wanted:</h4> <p> Wanted costs fit under the discretionary cost category. What is wanted may not be reasonable within the budget. Use discretion when deciding on items that are wanted.</p> <p> read more about Needed vs Wanted costs <strong>+++link to article+++</strong></p> <h2> <strong>Savings:</strong></h2> <p> Savings are any planned or extra funds a person can put aside after paying all of the bills.</p> <p> There are two main types of savings: short-term and long-term savings.</p> <h3> Short-Term Savings</h3> <p> Short-term savings refer to small goals in a short period of time (each persons time frame will depend on their left-over income funds after paying bills and spending on needed items). Short-term savings are usually under a year and for lesser expensive items. Examples would be acquiring a laptop, entertainment gadgets, or hobby accessories. They don't require a considerable amount of funds nor time to save up.</p> <h3> Long-Term Savings</h3> <p> When you set a long-term goal, it usually applies to something expensive such as a car, home, vacation, or retirement. The period of time is usually a year to several years or in the case of retirement, decades.</p> <p> <strong>Once you define your savings goals, you can start.</strong></p> <p> There are&nbsp;two simple ways to save towards long-term goals&nbsp;that people use without compromising your budget.</p> <ul> <li> Cost out long-term savings goals as accurately as possible and then calculate a realistic amount you can save monthly over a reasonable duration of time given your income and expenses.</li> <li> Save a reasonable amount you can afford as a general and ongoing practice, investing the savings wisely until your savings are large enough to use towards big-ticket expensive items and goals when you're wanting to.</li> </ul> <p> Do you want a friendly tip to beginners? Start small. Try to save some each month to make it a good habit. Or, build your Savings account little by little then make plans.&nbsp;&nbsp;However, if you are ready to go bolder, investments and Financial Planners may be what you’re what you looking for. Learn more here <strong>+++link to Financial planner+++</strong></p> <h3> Moving Forward</h3> <p> Now that you are familiar with the basic concepts, it’s time to get hands-on budgeting.</p> <p> You don’t need to be perfect. Once you create a Savings method and keep your expenses under control to avoid debt, managing your financial life will be satisfactory.</p> <p> Remember: “Good&nbsp;budgeting equals: Making income so you can pay your bills, purchase things that you need, and save for the future.”</p> <p> Are toy ready to&nbsp;start? Join us for a "Your Budget Trial"</p> <p> <strong>Sign up +++CTA+++</strong></p> <p> &nbsp;</p>

<p> Use our tips to help you save money, create value and protect your income. Here is a list of some skills&nbsp;you should know.</p>

<h3> Good budgeting equals: Making income to pay bills, purchase things, save for the future.</h3> <p> Budgeting is an essential life skill. However, many many of us are never taught how to do it. No matter what your income is, if managed properly you pay your bills and plan for the future.</p> <p> A Budget is a structured process. Like any recipe, it has basic ingredients, instructions, and the combination gives a clear view of your finances. Understanding the terms and their functions make the budget building easy. Shall we learn about them.</p> <h2> The Basic Ingredients</h2> <h2> Income:</h2> <p> Income constitutes any source of money you receive, whether from work, investments, allowances.</p> <p> For family budgets, every little bit counts.</p> <p> Here are some various examples of income apart from the mainstream ones:</p> <ul><li> Grants and Scholarships</li> <li> Government Sources (Pensions, Assistance plans, Tax Refunds, Children's Credit Maternity leave)</li> <li> Child/Spousal Support Payments</li> <li> Company Pension Plans</li> <li> Retirement Plans</li> <li> Company Pension and Savings Plans</li> </ul><h3> <strong>Monthly and Bi-weekly Paychecks</strong></h3> <p> Income generally comes in two forms. Either you get paid by the monthly system (mid-month and month-end checks) or every two weeks (or weekly).</p> <p> Most people find it hard to work with both at the same time. This budget is based on a monthly system, but YBP has one way to facilitate using the so-called Paycheck to Paycheck system. It can then function;</p> <ul><li> with several people using the monthly system</li> <li> with several people using  the bi-weekly system or</li> <li> with a combination using the monthly system and the bi-weekly system.+++<strong>see our way to handle both methods</strong>+++</li> </ul><p> <u><strong>+++see our way to handle/combine both methods+++</strong></u></p> <h2> Expenses:</h2> <p> Expenses are costs, everything you spend money on. Budgeting means categorize all your costs regarding their nature and types.</p> <h3> <strong>Types of costs</strong></h3> <h4> Fixed Costs</h4> <p> Fixed costs are unavoidable, needed expenses that do not change or vary much in the short-term. Rent, mortgage and lease payments, some utilities, insurance, these are all examples of fixed costs.</p> <h4> Variable Costs:</h4> <p> Variable costs are expenses that vary within the short term, for the purpose of household budgeting variable costs could change from month-to-month. Examples include groceries, clothing, some utilities, and transportation.</p> <h4> Discretionary Costs:</h4> <p> Discretionary costs are unnecessary expenses (wanted) where you'll find much of your budgeting wiggle room.  Entertainment, vacations, and luxuries are examples of expenses that are wanted, not needed. </p> <p> In YBP we create categories to facilitate and organize your expenses monthly to keep track of payments. In the digital era, less and less cash is used. Debit cards and credit card use is on the rise. Debit and credit card expenses are also easy to forget about. Therefore it is wise to check your expenses and remaining limits before going on major shopping outings. </p> <h3> Needed or Wanted:</h3> <h4> Needed:</h4> <p> Needed costs are self-explanatory, they are expenses that are essential for a living standard that is acceptable to your household. They fall within fixed and variable costs. Needed costs leave little wiggle room for adjustments in your budget.</p> <h4> Wanted:</h4> <p> Wanted costs fit under the discretionary cost category. What is wanted may not be reasonable within the budget. Use discretion when deciding on items that are wanted.</p> <p> read more about Needed vs Wanted costs <strong>+++link to article+++</strong></p> <h2> <strong>Savings:</strong></h2> <p> Savings are any planned or extra funds a person can put aside after paying all of the bills.</p> <p> There are two main types of savings: short-term and long-term savings.</p> <h3> Short-Term Savings</h3> <p> Short-term savings refer to small goals in a short period of time (each persons time frame will depend on their left-over income funds after paying bills and spending on needed items). Short-term savings are usually under a year and for lesser expensive items. Examples would be acquiring a laptop, entertainment gadgets, or hobby accessories. They don't require a considerable amount of funds nor time to save up.</p> <h3> Long-Term Savings</h3> <p> When you set a long-term goal, it usually applies to something expensive such as a car, home, vacation, or retirement. The period of time is usually a year to several years or in the case of retirement, decades.</p> <p> <strong>Once you define your savings goals, you can start.</strong></p> <p> There are two simple ways to save towards long-term goals that people use without compromising your budget.</p> <ul><li> Cost out long-term savings goals as accurately as possible and then calculate a realistic amount you can save monthly over a reasonable duration of time given your income and expenses.</li> <li> Save a reasonable amount you can afford as a general and ongoing practice, investing the savings wisely until your savings are large enough to use towards big-ticket expensive items and goals when you're wanting to.</li> </ul><p> Do you want a friendly tip to beginners? Start small. Try to save some each month to make it a good habit. Or, build your Savings account little by little then make plans.  However, if you are ready to go bolder, investments and Financial Planners may be what you’re what you looking for. Learn more here <strong>+++link to Financial planner+++</strong></p> <h3> Moving Forward</h3> <p> Now that you are familiar with the basic concepts, it’s time to get hands-on budgeting.</p> <p> You don’t need to be perfect. Once you create a Savings method and keep your expenses under control to avoid debt, managing your financial life will be satisfactory.</p> <p> Remember: “Good budgeting equals: Making income so you can pay your bills, purchase things that you need, and save for the future.”</p> <p> Are toy ready to start? Join us for a "Your Budget Trial"</p> <p> <strong>Sign up +++CTA+++</strong></p> <p>  </p>

<p> Use our tips to help you save money, create value and protect your income. Here is a list of some skills you should know.</p>

main theme of the article needs to be highlighted in the first paragraph

structure of the article needs to be adjusted to main theme

text too content-heavy: consider splitting into more articles

This article focuses on the basics of budgeting: income, savings, expenses. We should consider taking out the different forms of expenses and use them as a separate article. Same about "needed" and "wanted - too lecturing.

This article focuses on the basics of budgeting: income, savings, expenses. We should consider taking out the different forms of expenses and use them as a separate article. Same about &quot;needed&quot; and &quot;wanted - too lecturing.