Flight Attendant Financial

As a flight attendant, you lead a fast-paced and exciting life, traveling to different destinations and meeting new people every day. However, managing your finances while constantly on the go can be a challenge. In this comprehensive guide, we will explore the steps for effective budgeting along with helpful budgeting tools for flight attendants. By implementing these tips and strategies, you can take control of your finances and achieve financial stability, no matter where your career takes you.

Creating a budget is essential to manage your finances effectively and ensure you have a clear understanding of your income and expenses. Here’s a step-by-step guide to help you create a budget:

Step 1: Gather financial information

Start by gathering all your financial information. This includes your income sources, such as your salary, freelance work, side hustles, or any other sources of money. Additionally, collect information on your monthly expenses, including bills, groceries, transportation costs, debt payments, and other regular expenditures. You can use bank statements, receipts, and financial records to help with this.

Step 2: Calculate your total monthly income

Add up all your sources of income, including your minimum base salary as a flight attendant, any additional pay such as per diem or bonuses, and income from any other jobs or investments. Calculate your average monthly income to establish a baseline for your budget. It’s a good idea to use an average of your last few months’ earnings for this.

Step 3: Calculate your total monthly expenses

Create a detailed list of both your fixed and variable monthly expenses. Fixed expenses are those that remain relatively constant each month (ie: rent/mortgage, utilities, loan payments), while variable expenses can fluctuate (ie: food, entertainment, travel). Analyze your past spending patterns to estimate the average amount you allocate to variable expenses.

Common expense categories for flight attendants include:

• Housing (rent/mortgage, utilities, crash pad)
• Transportation (car payments, gas, public transit, taxis)
• Food (groceries, meal prep, takeout/dining out)
• Insurance (health, auto, renters)
• Debt payments (credit cards, loans)
• Entertainment (subscriptions, events, movies)
• Savings (emergency fund, retirement, other goals)
• Health (exercise, therapy, medicine)
• Travel (accommodation, activities, meals)

Step 4: Adjust for surplus or deficit

After calculating your total monthly income and total monthly expenses, subtract your total expenses from your total income to determine if you have a surplus or a deficit. Ideally, you want your income to exceed your expenses so you have money left over for savings and discretionary spending. If you have a surplus, that’s great! Consider allocating the surplus to savings, paying off debt, or increasing contributions to retirement accounts and other investments. If you have a deficit, you’ll need to make adjustments to your budget. Look for areas where you can reduce expenses, like cutting unnecessary subscriptions or finding ways to lower utility bills.

Step 5: Factor in savings and investments

Allocate a portion of your income towards savings and investments. It’s crucial to build an emergency fund and plan for your long-term financial goals, such as retirement. Determine the percentage or amount you want to save each month and include it in your budget.

Step 6: Create a budget template

Use spreadsheet software like Excel or Google Sheets, or budgeting apps to create your own budget template. If making your own template sounds like a task too daunting, you may also utilize what can already be found online (for free!). By doing a quick search for “free budget templates”, I found 101planners.com, which has a plethora of great pre-made templates available to download, edit, print, and use.

List all the expense categories and income sources you’ve identified in an organized manner. Having a template will make it easier to track your finances and make adjustments when necessary. In the example above, I am using this Google sheets template found on 101planners.com. Spreadsheets like these are perfect for easy editing and can also auto-calculate any totals or differences.

Step 7: Input the numbers

Fill in the amounts for each expense category and income source in your budget template. Be realistic and honest about your spending habits. Use past bank statements and receipts as references to input accurate figures.

Step 8: Review and adjust

Once you have input all your financial data, review your budget. Assess whether your total income covers your expenses and savings goals. If your expenses exceed your income, you may need to make adjustments by cutting back on discretionary spending or finding ways to increase your income.

Step 9: Track your expenses

Record your expenses as you incur them and compare them to your budget regularly. Utilize mobile apps or budgeting software to track your expenses on the go. This will help you stay accountable and make necessary adjustments if you deviate from your budget. Monitoring your spending habits is key to maintaining financial discipline.

Step 10: Reevaluate periodically

Periodically reassess your budget to accommodate any changes in income or expenses. Life circumstances can change, and so can your financial situation. It’s important to be realistic, even if it hurts. Regularly review and update your budget to ensure it remains relevant and effective. This will allow you to make adjustments and stay on track toward your financial goals.

Useful Budgeting Resources

Personal Finance Websites

• Mint.com – Mint is a popular free budgeting tool that allows you to track your expenses, set financial goals, and create budgets. It automatically categorizes your transactions and provides insights into your spending habits.

• YouNeedABudget.com – YNAB is a budgeting software designed to help you give every dollar a job. It emphasizes budgeting based on your actual income, making it easier to allocate funds to your various expenses.

• EveryDollar.com – EveryDollar, created by Dave Ramsey, is a budgeting app that follows a zero-based budgeting approach. It encourages you to assign every dollar to a specific expense category.

• TheBalance.com – The Balance offers a wide range of articles and guides on personal finance topics, including budgeting, investing, and saving. It’s a comprehensive resource for financial education.

• NerdWallet.com – NerdWallet provides personalized financial advice and offers tools to compare financial products like credit cards, loans, and insurance. They also have helpful budgeting and saving guides.

Books on Budgeting

Consider reading these books for in-depth budgeting insights:

“Get Good With Money” by Tiffany the Budgetnista Aliche

“The Total Money Makeover” by Dave Ramsey

“Your Money or Your Life” by Vicki Robin and Joe Dominguez

These resources cover a wide range of budgeting needs, from tracking expenses to improving your overall financial literacy. Choose the ones that align best with your financial goals and preferences.

Mastering your finances as a flight attendant is all about planning, discipline, and making informed decisions. By following this step-by-step guide and implementing the budgeting strategies discussed in this post, you can achieve financial stability while enjoying the perks of your exciting career. Remember that creating a budget is a continuous process, and it may take some time to fine-tune it to fit your lifestyle and financial goals. Be proactive in managing your finances, stay accountable, and watch your financial health soar to new heights!