Build your budget

Remember to never budget with Pre-tax or Gross income. Budget with your take-home pay, what hits your account or your hand after taxes.

How often you get paid changes the math, so the calculator below asks first. Paid every 2 weeks? You get 26 checks a year, and that is a little more than 2 a month. Twice a month? Exactly 24. The calculator turns your checks into one clean monthly number so you never have to do that math again.

As soon as you get paid, put a little away. Even $10. This is called save first, and it beats saving whatever is left, because there will almost always be something that pops up that may need money. Saving first helps you achieve your goals and avoid junk spending.

Your first target is emergency savings, and you should set it. It is recommended that an ultimate goal is three months of pay in savings. It is best that you pick intermediary goals in between that, that are achievable in the short term. Plenty of people start at $1,000 because it covers most common surprises.

Every budget has a leak. A subscription you forgot, food delivery that costs double the food, a phone plan from three years ago. You don't need to cut everything you enjoy. Find one leak, plug it, and move that money to savings.

A useful target is to spend about 50% of your money on needs, 30% on things you want, and saving about 20%. This is just a target, your situation may be different and you should adapt for your personal goals.

One late bill can cost a fee, a shutoff, and a credit mark that follows you for years. Paying on time is the single most powerful money habit that exists, and it is free.

• Put one bill on autopay today. Rent or phone. One is enough to start.
• For the rest, set phone reminders 3 days before each due date.
• If a bill is going to be late anyway, call or check online before the due date. Most companies will try and work on you.

The best place to start storing your money for most people is a bank. Bank accounts are protected by the FDIC, a government agency that covers up to $250,000 per depositor at each insured bank, so if the bank fails your money is still yours. Credit unions carry the same protection through an agency called the NCUA. Banks also offer products like high yield savings accounts that can pay you interest for keeping your money with them.

It helps to know how banks make their money, because it explains their prices. A bank takes the cash people deposit and lends it out to banks and other customers. It gets paid interest on these loans and pays you an interest on your money based on the kind of account you have.

The most basic kind of account is a checking account. It stores your money and gives you a debit card you can use to access that money, it pays little to no interest. Savings accounts usually are less liquid and pay out slightly more interest, usually a few percentages. On their side, credit cards charge twenty to thirty percent, and some loans go beyond that. Our goal is to limit the amount of interest we pay and increase the amount we are getting.

Opening an account takes about twenty minutes and a short list of items. Bring these four and you can walk out with an account the same day.

• A photo ID, like a driver's license or a state ID card.
• Your Social Security number. You may need the card, or just the number, depending on the bank.
• Proof of address: a piece of mail, a lease, or a utility bill with your name and address on it.
• A small first deposit. Some banks open an account for $25, some for even less. Ask before you go.