## Savings & Budgets

In our previous illustration, we began speaking about allocating one’s resources for one’s lunches. I have provided one sample below to illustrate how one can budget for one’s daily coffee.

For Example: Dunkin Donuts Coffee  – medium coffee is roughly \$2.00.

•  One needs to determine the size of one’s coffee.
•  One must determine the brand of one’s coffee.
•  One must determine the frequency of one’s coffee intake.

Example: Dunkin Donuts: \$2.00 x \$7.00 = \$14.00.

If one allocates \$14.00 per week then one would need to allocate \$14.00 x 4= \$56.00 per month for coffee.

It is always wise to add additional savings to one’s budget for coffee for unexpected circumstances, a Barnes and Noble visit and or dinner with friends.

## Savings & Budgets

One way to maximize one’s savings is to establish a savings jar. One can use a savings jar to save for a specific budgetary category. For example, if one would like to save for lunch for the month of September, one can build one’s savings to ensure one has sufficient resources for October.

• Utilize a savings jar to save for a specific category.
• Utilize a savings jar to save one’s coins for a rainy day fund.

## Budgeting & Assistance

Unemployment

Sample Illustration:    Based upon the maximum unemployment  weekly benefit rate in the State of New Jersey \$624.00. We will use a biweekly figure of  \$1248.00. While these figures are modest due to expenses needed to maintain a household,  I have used these categories as a guide.

Biweekly Rate: \$1248.00 (I will split rental and car payments in this sample illustration because the monies are a little lower than our previous illustration.

Pay Yourself  First: 10% -\$124.80

Budget:

Tithes/Donations: 10%  \$124.80

Mortgage/Rent: \$499.20   (Split your payment into  two payments). Two bi-weekly payments will make up your rental and or mortgage payment per month while you seek fulltime and or part time employment. In circumstances where rental and mortgage payments exceed the amount used in this illustration, one can still apply for General Assistance. –See state specific guidelines.

Insurance: \$94.09

Utilities: \$110.00/\$55.00  (contacting your electrical company for payment plan options are also another resource). If you are unable to establish a payment arrangement you can also split this category in two separate payments based upon your bi-weekly pay period.

Cell Phone: \$60.00  (It is important to keep this figure modest and to contact your wireless provider to modify your plan to a basic plan while on unemployment).

Groceries : \$70.00  (If one needs help in this area one can apply for General Assistance as noted in the previous post).

Car Payment:  \$150.00/ (Split your payment into two payments).- Two bi-weekly payments will make up your car payment).

Gasoline:  \$ 50.00

Healthcare: (Medicaid can also help with this category).- See specific state guidelines.

Savings: \$20.11

Debt: (It is important to contact your creditors to advise you are experiencing a temporary financial hardship and provide a written statement to your creditors in order to establish a payment arrangement). It is important to communicate with your creditors to maintain your relationship while protecting your credit.

Although we do not have as many resources available for savings, we still have \$124.80 remaining that we have paid ourselves from this pay period.

If there are additional debts and or child care expenses one can budget those categories in your next pay period along with the remaining monies needed for rental and car payments.

## Budgets & Assistance

The unemployment rate and the loss of employment increase daily throughout the United States.

It is important to remember not everyone has the ability to follow these budgetary practices however, the important thing to remember is there isn’t any situation that one may experience that faith cannot overcome.

Unemployment Resources for the State of New Jersey:

## Savings & Budgets

I believe in order to build a good budget repetition is key.

Once one becomes comfortable with a particular method it is okay to try new strategies. Your goals is to build an effective savings strategy, but it is also important  to maximize one’s savings whenever possible.

For Example:

• If you paid yourself 10% -increase your savings 11%.
• If you paid yourself \$100.00 for your additional savings, then next pay period you can increase your savings to \$120.00.
• If you want to start saving for a CD, stock, vacation, shopping etc. You can either increase your savings, work overtime, and or cuts area where you have the ability.
• Establish a savings jar to save all of your change.
• Establish a dollar jar to save all of your one dollar bills every week.

## Savings & Budgets

In the previous illustration we have saved roughly \$332.67 not including our entertainment resources of \$107.33.

If one does not know where to allocate one’s savings here are a few tips#

Saving Allocations:

\$100.00 High-Yield Savings   Sallie Mae High-Yield Savings

\$100.00 CD, bond or increase your 401k  Sallie Mae High-Yield Savings / Treasury Direct

Fidelity Cash Management

\$30.00 Coffee

\$60.00 Misc./Spa/Nails

\$ 42.67  Entertainment/Restaurant

\$ 107.33  –Remaining