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What is a Healthy Budget?

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    What is a Healthy Budget?

    Now that we have been discharged and closed for a few months, we finally seem to have a firm grasp on our budget. After all bills are paid we find that we have around $700 or so left over for "play money" every month (family of five)

    What is considered to be a "healthy budget"?
    Filed Ch 7 - 07/10/08
    341 Meeting - 08/13/08
    DISCHARGED! - 10/15/08
    CLOSED - 10/20/08

    #2
    It varies so much by individual circumstances, I can't really say.

    if you are putting away and maximizing 401(k) (401(b) and other plans) contributions during the year, and still have 10% or more of your gross income left at the end of the month... that's good.

    You would create a rainy day or Christmas or Vacation savings account and save even more.

    I use to spend all my disposable income on entertainment. I don't do that anymore. However, you do need to enjoy yourself... go out every so often (once a week), but be level headed about it.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      Well, if you have $700 left over, I would not view it as "play money". that should go straight into an IRA, Annuity, or Whole Life Policy for retirement.

      Does your current budget include some entertainment expense?

      Comment


        #4
        I think a healthy budget is one that includes a line item for everything that you spend money on.

        Besides the regular bills:
        retirement
        emergency fund (3-6 mos of expenses)
        auto repair fund
        auto replacement fund (cash)
        out of pocket medical
        christmas
        vacation
        clothing
        personal care/grooming
        blow money
        dining/entertainment
        furniture/appliance replacement
        set aside money monthly for any irregular bills
        home repair fund
        pet care
        fund for any big items you want to save up for

        One of my post-BK goals (in addition to the above) is to also have one months worth of all expenses in the bank account so it doesn't matter when pay-day is vs. when specific bills are due.

        If you still have any money left after all that, you could just send it to me...
        BKForum Blog: The Journey

        sigpic

        Comment


          #5
          Definitely do not view the $700 as "play money!"

          Before I invested in retirement, I would make certain that my emergency fund is in place. That will do wonders to keep you out of trouble in the future.

          Also, if everything is accouted for, then you are in good shape!
          Filed 8/08 - Discharged 11/08! Not tracking FICO.
          Pre-Bankruptcy Net Worth: -$72,000... Today's net worth: $142,000.
          If your FICO score just went higher than your net worth, and you are happy about this, you might have a financial problem!

          Comment


            #6
            Since you are just out of BK, credit is going to be hard to come by and if there is a major car repair that needs to be done, or if you have a house and the roof starts leaking or the water heater or other major appliance goes, I highly suggest you put the majority of that away for those sort of expenses because you just won't be able to whip out a credit card or cash advance check to cover those expenses. One car repair can easily come close to $1,000 if it involves something major and not covered by any warranty.
            _________________________________________
            Filed 5 Year Chapter 13: April 2002
            Early Buy-Out: April 2006
            Discharge: August 2006

            "A credit card is a snake in your pocket"

            Comment

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