Step 2: List All Your Monthly Expenses
Next, jot down everything you spend money on. Start with the basics—housing, utilities, groceries, insurance—and then add in other categories like medications, entertainment, and gifts.
Here’s a sample list:
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Rent/mortgage: $1,000
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Utilities (electric, gas, water, internet): $200
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Groceries: $300
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Medications/healthcare: $200
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Transportation (gas, bus pass, car insurance): $150
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Entertainment/fun: $150
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Savings/emergency fund: $300
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Travel fund: $100
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Gifts for family/friends: $100
Total: $2,500
Notice how every single dollar is spoken for? Nothing is left hanging around without a purpose. That’s the zero-sum magic.
