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How to Budget on a Fixed Income - Ebele Kemery

Fixed income connotes a type of investment that does not deal with equity. Investments that are classified as such income, obligates the issuer/borrower to make regular payments at a pre-determined schedule.
Another meaning that can be derived from the term 'fixed income' is that it relates to a person's incoming cash flow that does not change with each given period. This may include incomes that are derived from investment instruments such as preferred stocks, bonds or even pensions that assure a fixed income. When retirees and pensioners are dependent on their post-retirement benefits as their only source of income, the term also carries a connotation that these retired people have limited discretionary income.

Are you on a fixed income and have no idea how to set up a good budget? It is actually easier to budget on a fixed income, then on a regular income because you always know when and how much you are going to have. Here is how to budget on a fixed income explained by Ebele Kemery for you.

First, you already know how much money you will have every month and every year. It is fixed for you. This makes figuring out what your income is very easy to do. Let's just assume that your fixed income amount is $1,000 a month. This is a nice round number that will be easy to work with.

Next, you need to figure out what your expenses are each month. Don't forget about car registration and other yearly expenses. They need to be figured into your monthly budget as well. Now if your expenses are more than your income each month, then you need to do something to change that.

You might have to move into a cheaper place to live, cut back on something, or something else that will get you to where your expenses are less than your income. Do whatever it is you have to unless you are OK with finding a job to supplement the portion of your expenses that are not covered.

Last, you need to figure all your expenses, an entertainment budget, and any extras for each month. Then, all you have to do is be disciplined and follow your budget. You cannot stray from your budget when you have a fixed income because there probably will not be much left after your expenses.

Now you know how to budget on a fixed income and you can use these tips along with your own common sense to make sure you are going to survive on your fixed income.

Ms. Ebele Kemery is a member of the Global Fixed Income, Currency & Commodities (GFICC) Group. Based in New York, Ebele is the head of Energy Investing within the Commodities team.

Ebele is consistently promoted; recognized for development and leadership strengths and Strong analytical approach; full-tuition scholar from top-tier university possessing a Bachelors in Engineering in Electrical Engineering.
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