Advice on budget plan

Here’s a clear, practical budget plan tailored to your situation. We'll start by calculating your income and necessary expenses, then allocate what's left for variable costs like takeout and self-care. Finally, we’ll address whether you can afford the health insurance.

Step 1: Income

You earn about $475 per week, which translates to approximately $2,056 per month (4.33 weeks in a month).

Step 2: Fixed Expenses

Your monthly essential expenses include:

Rent: $582
Utilities: Around $230
Loans: $50 (minimum payment)
Groceries: $120
Transportation: $100 (bus pass instead of Uber)

This totals $1,082, leaving you with $974 after covering all essential costs.

Step 3: Adding Health Insurance

The health insurance you want, which costs $60 per month, can fit into your budget. Subtracting $60 leaves you with $914.

Step 4: Discretionary Spending

To avoid overdrafting, limit and structure your flexible spending:

Takeout: Aim for $40 per month, about one meal per week.
Skincare: Save $25 per month to cover your quarterly expense of $80–90.
Wants/Self-Care: Limit this to $45 per month, roughly $15 per week.
Subscriptions: Only $2 per month for Google One and Moovit.

This totals around $112 for discretionary spending, leaving you with $802 remaining.

Step 5: Savings and Buffer

Use part of the remaining $802 to create a buffer and save for emergencies:

Allocate $100 monthly to a savings account. This will build a small safety net for unexpected expenses.
The remaining $702 can serve as a cushion for months when utilities or groceries run higher.

Step 6: Weekly Budget

Since you live paycheck to paycheck, breaking your budget into weekly chunks can help:

Set aside $134 for rent, $53 for utilities, $25 for transportation, $30 for groceries, and $10 for takeout each week.
After these expenses, you’ll have $223 left per week. Save $25 of this weekly balance and use the rest as a buffer.

Tips to Stick to Your Plan

Automate Payments: Schedule rent, utilities, and health insurance payments to avoid missed deadlines.
Use a Prepaid Card or Cash for Extras: Load $40 per month onto a prepaid card or withdraw that amount in cash for takeout.
Track Weekly: Use a simple app like Mint or a notebook to track weekly spending and ensure you’re on target.
Reduce Uber Rides: Relying on the bus instead of Uber saves $180+ per month.

Can You Afford Health Insurance?

Yes, with these adjustments, health insurance is affordable, and you’ll still have funds left to save and manage emergencies. By simplifying and sticking to these limits, you can avoid overdrafts and build financial stability.