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Jason and I were talking the other day on the back yard swing. He seen me working on our budget and started asking me questions. Like he didn't understand why I tell them to watch their consumption of certain things in the house. So I opened my notebook to a clean sheet of paper and began my lesson.....
I showed him an average income (it was just random) and then in the next column I started listing expenses and added up those expenses at the bottom. I then made another column for nonfixed expenses (this is how I do our budget as well) and listed some nfe and did the same added them up at the bottom. I took the amount of the fixed and subtracted it from the monthly take home and explained this is how much this person would have left on this income paying what they have little control over (fixed expenses) I then took the leftover amount and subtracted the nonfixed expenses and showed him the leftover amount. His eyes got huge and said that's all. I said yes,now do you see why it's important to know where you money is going and to plan well,if not then I did another senerio. One of a nonplanned budget.
I took an income and took off the top money to eat out on and gas and going out and having a good time,I then took out fixed expenses and started one by one taking out nonfixed expenses and this person was in the red. He looked at the 2 and smiled. He got it. He looked at me and said that's why you are always telling me it's not on the list. LOL
God Bless, Tammy |
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