Budgeting 101

This has quickly become one of my favourite topics and passtimes. 

An interesting thing about money I have found is if you don’t plan for your money, it will develop its own mind and you won’t be able to account for where it all went. Given the early wake ups and long commutes home we make to get this money, I think it makes sense to look after it. I’ve also found there are alot of things calling out for the attention of the money you have worked for e.g optional insurance after purchasing an item, the three for two offer at Tescos when you only wanted one item, the biscuits you shouldn’t even be eating.

Budgeting helps to ensure you don’t run out of money before your next paycheck and don’t have to live off your overdraft. It also means you get to stack up your savings 🙌 (another of my new favourite topics).

This is the way I have decided to tackle budgeting at the moment (I am still tweaking it).

1. I write down somewhere ALL my monthly expenses i.e what I spend my money on everyday, no matter how small. I write this on my phone and later in a book but you might do better using an excel spreadsheet. This way you can identify any bad spending habits you have and get rid of them.

2. When I get paid, I make sure I remove all my expenses first!! Doing it first helps to ensure you don’t run out of money to cover your bills and other important necessities.  If this section is taking a lot out of your expenses, consider a review of what you are spending on.

3. After I have removed the money to cover my expenses, I remove some to save – unintentionally I save roughly  a third of what I get. I think the key is to save as much as you can. A penny saved is a penny earned. This third may be further split depending on what I’m saving for so I may put some money away for my holiday and some into savings I don’t touch.

4. From the remainder, I remove money for petrol, food shoping and personal care products – I separate this from expenses because this may fluctuate, but putting money aside for it helps me keep myself in check. 

5. From the rest of the money (which by this point is not all that much) I keep some money to play with. So money for Nandos, cinema, getting a massage and other leisurely activities come from here. All work and no play makes Jack a dull boy and that is especially true with your money.

6. At the end of the month I sit with my receipts (which I advise you to keep) and “balance my books” 🙌 – I look at any money I have left over and save that, look at any bad/wasteful habits and where I could have saved more etc 

What are your budgeting tips to help you save that money? Share below 

Until next time 

Memoirs Of A Yoruba Girl 

Advertisements

About Memoirs Of A Yoruba Girl

A Londoner rooted in Yoruba culture exploring life behind her personal lenses

Posted on October 14, 2016, in The Randomers and tagged , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: