How do you create a budget based off of your take-home pay?

Answer by  cindy1645 (128)

Use your take-home pay, then subtract your home expenses (rent or house loan payment), property taxes, insurance, water, utilities, etc. Next deduct any monthly expenses such as car loans, credit cards, child care, health insurance, food, gym fees, and job related expenses such as union dues or gas. Then you can determine what is left over for social activities.

Answer by  tamarawilhite (17883)

Only base your budget on take home pay if the deductions include health insurance and taxes; those are major budget categories that usually come off a check pre-tax. If you receive a tax refund every year, adjust your withholding; you'll have less tax paid and more money to budget with.