Meeting your Saving Goal
Budgeting can be a very difficult process. A lot of people have trouble with identifying overspending and setting healthy targets. Our spending can often get away from us when we only think in terms of bank balance and don’t break down our expenses.
BearMoney holds balance at our core, so we really believe in setting sensible targets and making allowance for living in the real world. That’s why our budgeting mindset advocates for establishing a solid foundation while allowing for setbacks and discretionary spending.
One of the key required concepts for the BearMoney approach is the establishment of your 6MCS saving buffers, that’s Six Months Current Spending. Getting to a place where you have enough money to survive for six months with no income is extremely helpful. Saving up a 6MCS will teach you good habits and provide a sense of security for the future.
What is the Budget Tool?
The Ideal Budget is the level of spending you are going to have to adopt in order find your way to your saving goals. It is a relatively simple tool based on the concept that you can divide your spending, prioritize, and meet goals.
Overall, the Ideal Budget Tool will help you categorize your expenses, and set saving/spending targets for your current situation. It will guide you to the position where you will reach your goal based within the specified time-frame.
How the Ideal Budget Tool Works
The Ideal Budget Tool uses some very simple calculations alongside general expense categories to set spending and saving targets
To use this budgeting tool you must do the following;
- Calculate your Net Monthly Income
- Fill in the number of people in your household
- Select a goal from the three options
After those three straightforward steps you will be provided with 9 metrics. You will see your spending target (broken down into categories), saving target, and a number showing you how much budget you have per household member.
Hopefully you find this tool useful, if you have any other tools to recommend please feel free to comment below!
Note:This tool is constantly developing and may show odd results. Please double check calculations if you are unsure on the result.