Inergy

How to Create a Budget
Creating a budget is one of the simplest and most effective ways to control your spending, saving, and investing. You can’t begin to improve your financial health if you don’t know where your money is going, so start tracking your expenses against your income, then set clear goals.

Bank accounts are typically the first financial account that you’ll open and are necessary for major purchases and life events. Here’s a breakdown of which bank accounts you should consider and why they are step one in creating a stable financial future.

How do I create a budget?
Budgeting starts with tracking how much money you receive every month, minus how much money you spend every month. You can do this in an Excel sheet, on paper, or in a budgeting app—it’s up to you. However you track your budget, clearly lay out the following:

Income: List all sources of money that you receive in a month, with the dollar amount. This can include paychecks, investment income, alimony, settlements, and money that you make from side jobs or other projects, such as selling crafts.
Expenses: List every purchase that you make in a month, split into two categories: fixed expenses and discretionary spending. If you can’t remember where you’re spending money, review your bank statements, credit card statements, and brokerage account statements. Fixed expenses are the purchases that you must make every month. Their amounts don’t change (or change very little) and are considered essential. They include rent/mortgage payments, loan payments, and utilities. Discretionary spending is the category for nonessential or varying purchases for things like restaurant meals, shopping, clothes, and travel. Consider them wants rather than needs.
Savings: Record the amount of money that you’re able to save each month, whether it’s in cash, cash deposited into a bank account, or money that you add to an investment account or retirement account like an IRA or 401(k) if your employer offers one.

Which credit card should I choose?
Credit scores have a big impact on your odds of getting approved for a credit card. Understanding what range your score falls into can help you narrow the options as you decide on the cards for which you may apply. Beyond your credit score, you’ll also need to decide which perks best suit your lifestyle and spending habits.

What’s an emergency fund?
An emergency fund is not a specific type of bank account but can be any source of cash that you’ve saved to help you handle financial hardships like job losses, medical bills, or car repairs. How they work:

A high-yield savings account is another type of savings account that usually pays a much higher rate of interest than a standard savings account. The tradeoff for earning more interest on your money is that high-yield accounts tend to require bigger initial deposits, larger minimum balances, and higher fees.