Money Talks:

Hey, you guys! The weather is getting warmer outside, which means: Summer is right around the corner! There’s no better way to kick off the season than with our bills paid and still a little extra money in our pockets 😉.

Here are some tips to help you Budget Your Money for those gorgeous summer nights:

Step 1: Calculate Your Income

To calculate your weekly gross income:

  • Hourly Wage × Hours Per Week = Weekly Gross Income

To calculate your monthly gross income:

  • Weekly Gross Income × 4 = Monthly Gross Income

To calculate your weekly, or bi-weekly, net income:

[Side Note: If you need help figuring out what to input in the calculator, click here to send me a message, and I’ll walk you through it 😊.]

Once you’ve calculated your paycheck after taxes, determine your monthly net income:

For bi-weekly paychecks:

  • Paycheck Amount × 2 = Monthly Net Income

For weekly paychecks:

  • Paycheck Amount × 4 = Monthly Net Income

Write down these figures, we’re going to use them in just a bit.


Step 2: Calculate Your Expenses

Make a list of all your monthly fixed and variable expenses.



Fixed Expenses

Variable Expenses


Credit Card

Car Note

Utility Bill

Car Insurance


Cell Phone


Other Loans


{Fixed Expenses – bills that are the exact same amount every month.}

{Variable Expenses – bills that can change in amount on a monthly basis.}

Step 3: Calculate Your Debt-to-Income Ratio

Your Debt-to-Income Ratio is the amount of debt/expenses you have, compared to the amount of your overall income (in percentage form).

To calculate your Debt-to-Income Ratio:

  • Total Monthly Debt ÷ Monthly Gross Income × 100 = DTI %

Ideally, you shouldn’t use more than 43% of your overall income on bills. However, if you are using more than that, it’s okay! There’s a couple of options for you:


Step 4: Strategy

Since it’s about to be a fresh new month, it’s the perfect time to develop a plan to get on track with our bills.

In order to ensure all my bills were accounted for:

I opened one checking and savings account at one bank, and one free checking account at another bank.

  • My first checking account is used as my direct deposit account; my paycheck goes here.
  • The savings account is used to hold my emergency fund.
  • The second free checking account holds the money for my bills.

Tip: Set up automatic transfers to the second checking account every payday so you’re not tempted to spend your bills money.

{The fact that it’s at another location makes it harder to access, which helps those that frequently find themselves transferring the money back.}

By doing this, I’ve managed to completely avoid making any late payments. And it helped me manage my spending money better. Woot woot!

Knowing how much you make, compared to how much you’re spending each month puts your financial status in perspective. Once you see the bigger picture, it opens opportunities to increase your income and/or reduce your expenses.

I hope this helps you out as much as it helped me a few years back!

As always and forever more, if you have any questions or would like a walk-through on my strategy, feel free to click here to send me a personal message. ♥️

-Kat B. 💋

5 thoughts on “Money Talks:

  1. Interesting strategy that you have and I am glad that you haven’t missed any payments! Always glad to hear someone is winning out there. I was curious to see if you had a written budget you were using and if so what type of budget are you using?

    Liked by 1 person

    • Thank you very much! I appreciate that.
      I do have a written budget. Similar to the basic financial budget, with hints of a static budget as well.
      Every time I receive income, the funds are designated to specific expenses. Most times, regardless of my income, the expenses never change.
      Thank you for you’re question!


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