Track Your Spending
It is inevitable that you will spend some money during this time- we’re not delusional.
But this crucial step will determine how much you can afford to spend. Calculate your obligations first such as your mortgage, minimum credit card payments, insurance, utilities, and other legally mandated payments such as child support or alimony.
Is this number smaller than your income? That’s a great start. If not, you’ll know exactly how much you’ll need to supplement your income.
If your income is higher, the extra money might be seen as ‘fun’ money, but also keep in mind that there may be unanticipated expenses on the horizon. These can range from needing a new car to home repairs. Always keep these in mind, especially if you do not have emergency money set aside.
