The total of my future expenses each year are $58,261 I know
this is logical as my primary sources for information are:
According to US News (money.usnews.com) I can expect to make
$118,360 ($85,219 after taxes) each year as a management analyst living in
Santa Cruz, California. My education/training to get this job will cost
$191,000 total for all years of training (bachelor and master’s degree).
I want to save $7,000 each year for a rainy day fund plus
$20,000 each year for retirement. If I save $20,000 each year for retirement,
by the time I am 65 I will have $820,000 plus interest.
Comparing my future income to my expenses makes me realize
the importance of having a budget. It can be easy to overspend money if one
does not put limits on spending. People who do not keep budgets must not have
large retirement funds, as they are constantly outspending their budgets and
pulling the needed money from their retirement funds. This will force these
people to have to work much longer than those who keep track of spending. Comparing
my income and expenses also allowed me to see how quickly expenses can add up
if one does not pay attention. I outspent my budget the first few times I tried
to make one until I was finally successful. I will be certain to start keeping
a budget.
I did the same thing and completely agree. I am definitely going to work on a budget too.
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