Budget Basics

What is a budget? A budget is a plan for every dollar you have. Here’s how you set one up.

Start with your income. The first step in making a budget is to determine how much income you have each month. If you are married, be sure to include your spouse’s income as well.

Track your monthly spending. Make a list of your regular and fixed payments, such as a mortgage or rent, car payments, insurance, debt and taxes. Next, determine where the rest of your money goes. Review your online credit card statements to see what you spend and where. Jot down how much you spend on things like utilities, groceries, entertainment, subscriptions, and so on. A monthly budget worksheet can help you with keeping track of expenses.

Creating your budget. Once you have your income total and your expense total, the next step is relatively easy. You simply subtract your expenses from your income.

Ideally, you should have money left over once all of your expenses are deducted. This isn’t money you should just spend, however. This money can be used to build your emergency savings fund, pay down debt, or fund another financial goal.

Fund Your 401(k)
One of the great benefits that Krapf Group offers its employees is The Krapf Group 401(k) Plan. Not only can you put aside money for your retirement, you can also take advantage of the tax benefits it provides every year in which you contribute. As an additional incentive to encourage you to participate, Krapf Group is pleased to match 100% of the first 4% of your eligible compensation that you contribute to the plan. In addition, these match dollars will be 100% vested as soon as they are deposited to your account!

To learn more about the 401(k), click here.