How to create a budget that suits you

Checking their bank balance gets a lot of people down. Perhaps you could do without takeaway meals four times a week, or maybe not, but whatever your income, there’s always a way you can reach the end of the month with money to spare.

You should set up a savings plan
Do you have a savings goal? It could be a holiday or a wedding. Whatever your goal, start by saving small amounts and before you know it, you’ll have saved a lot.

We do work with the 50%, 30% and 20% distribution. 50% of your income is spent on fixed costs and shopping, 30% is saved for an occasion or for retirement. And finally, you can spend the last 20% on whatever you like. It doesn’t have to be perfectly precise, but you can stick to this distribution.

Don’t forget to keep things simple
When you start looking at your spending patterns, it’s easy to feel overwhelmed, so it’s important to divide it into small manageable pieces. Start with a general heading ‘bills’ and then continue to divide it into subcategories like ‘rent’, ‘groceries’, etc.

All expenses count
If you want to get a grip on your finances again, you have to be honest with yourself. Always keep all your receipts, even the one from the donut you bought in the canteen, all small bits count. Of course you can occasionally treat yourself a donut, but it’s about knowing how much money you can spend on it. For annual recurring expenses such as insurances, you can divide the annual amount by 12 to arrive at the monthly amount. That will help you with your monthly budget.

Always keep an eye on your spending pattern.
Once you’ve got a sense of keeping track with your finances, you can change your spending pattern if it doesn’t fit within your budget. Don’t adjust your budget, adjust your expenditures. This way, it will be easier for you to stick to your budget. When setting up your budget, also keep room for emergencies. Because if you spend all your money, there will be nothing left when an unforeseen expense comes around the corner.

Plan for spontaneous expenses
When you set money aside for when you need it, try to do something extra so you can reward yourself a little bit. Compare it to dieting, you’ve probably heard of ‘cheat days’. When people follow a strict diet, they often allow themselves to eat whatever they want one day a month. Set aside some money to spend once a month on your financial ‘cheat day’. That will allow you to spend money without going over your budget.

Hopefully these tips will allow you to set up a budget and save you money at the speed of light. Believe in yourself, you can!