How to budget living on $30,000 a year
You’ve covered the basics and the extras, but now what do you do with your salary of $30,000 a year? You plan for the future, of course, and you can definitely do that and still take care of bills on a smaller salary. You can still save for emergency funds, retirement, and even yearly vacations if you do some planning and saving.
The best way to save money on any budget is to create a zero-balance budget. To do this you simply write out every single thing you need to budget for. An example of a zero-balance budget would look like the following:
Car insurance $100
Car payment $350
Gas Money $150
Cell Phone $75
You too can budget living on $30,000 a year
If you bring home $2,500 a month, though, you have $400 left over. What do you do with that? You stick it in savings and pretend you don’t have it! That’s how you make your expenses and your income equal zero and create an effective zero-balanced budget. By doing this, you don’t allow yourself to blow through your money and have nothing left to show for it.
One of the best ways to save money for the future aside for the zero-balance budget is to divide the remaining amounts into sections. For instance, if you have $400 left over, and you want to save money for a vacation, put some in an emergency fund, and put some toward a savings account, you divide it up.
20 percent of your remaining funds go to the emergency fund- $80.
20 percent goes to the vacation- $80.
The rest goes to the savings plan- $260.
This uses up all of your remaining $400 so that you have it all allotted to something.
Now you can save for multiple things at once and stick to a zero-balance budget. It really doesn’t matter how much you save, as long as you save any extra that you have so that it doesn’t just go to frivolous things and then you have nothing to show for your hard work. A smaller budget doesn’t have to hinder you from saving and being responsible with your future and your money. You can live on $30000 a year!
Do you write out a budget every month?