How To Plan Your Financial Expenses For A $1000 Monthly Wage And Income.

Finance planning could be a heculian task for most low-income earners, since they do not have enough money to finance or foot all their bills. Sometimes, you may had plan your expenses well enough, and had taken account of all your basic needs and put them into consideration before you received your paycheck. But you rarely do meet up with your plans because of financial constraints. You're really not alone in this case, as most low-income earners often face the same situation.

Finance planning and meeting your basic financial goals is really not easy, especially when you've got very little resources to go round. It's basically for this reason that in today's post, I want to show you practical steps and strategies or a model you could use to plan your financial expenses for every month. Particularly if you often make up to $1000 monthly as a low-income earner.

This model will enable you to prepare a workable budget solution, effectively plan your expenses and still be able to save some money by the end of the day, after all your expenses. Let's get right ahead looking at these models.

Basic Personal Finance Planning Model For A Monthly $1000 Wage or Income:

If you're a low-income earner, whose monthly wage or income is an average of $1000, I believe the first and foremost thing you ought to consider as a priority when making a budget for financial expenses for each month are:

1. Your Basic Needs:

Under your basic needs, you ought to prioritize:

- Cost of feeding yourself or family if any, for the Month: Make an average estimate of how much it costs you to feed yourself or family daily, and its cumulative amount monthly. Let's say it costs you an average of $10 daily to feed a family of 4. Then, $10×30days=$300.

- Cost of transporting yourself daily to and from work. For instance, daily cost of transportation to and from work is $4. Thus, $4×30days=$120

- Cost of utility bills: Total cost of utility bills per month, say $60. Thus, total cost of basic needs is, $300+$120+$60=$480.

After specifying your monthly financial expenses and cost, for your basic needs, the next consideration should be given to other needs in your budget.

2. Other Needs:

Other needs may include;

- Cost of monthly data subscription: Data subscription monthly, let's say $25

- Cost of monthly Cable/Tv subscription: Cable/Tv network average monthly subscription, let's say $8.

- Cost of monthly recharge call cards: Average cost of recharge call cards per month, $15. Therefore;

Total cost of other needs is: $25+$8+$15=$48

After allocating specific amounts for your basic and other monthly needs, the next thing you'll want to consider is, how much are you going to be setting aside every month for payment of your accomodation rent, and your kids tuition fees if any. If your house rent and kids tuition fees are renewed and paid every three or six months, then you've got to decide how much you'll be keeping aside every month for that 3 or 6 moths.

- Tuition fees per month. Monthly cost of tuition fees for two kids is, say $50. Then for three months, it's $150.

- Accomodation rent per month. Cost of accomodation rent per month, let's say $75, then for three months, it's $225.

Total cost is: $150+$225=$375.

Therefore, total net cost of basic and other needs, plus tuition and house rent is, $480+$48+$375=$903. Now, if you earn up to $1000 as monthly wage or income, you'll be left with a total of $97 after using $903 as your financial expenses for the month. This should be a plus for you, since you'll be having up to five percent of your total monthly wage or income as your savings, while an amount that's a bit less than five percent for emergency reserve.

I believe this is a workable budget plan for very reasonable financial expenditures for a $1000 wage or income. But this is only a model you could adopt in preparing your budget, as some of the costs listed here may either be too high or low, depending on your country and inflation.

 When you've been able to sought out how much you will be setting aside monthly for payment of accomodation and tuition fee, then you check how much you've got left for savings and emergency reserve. I will suggest here that, ten or five percent of your wage or income should go for saving and emergency reserve respectively, but this will basically be dependent on how much your basic needs will cost you.

If you've got lesser needs at a much lower cost, I think it's better you put more money into your personal savings account and emergency reserve plans, in order to have more funds to be able to accomplish other future plans. Such as starting a business or saving to buy an asset.

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