Let’s face it, not having money sucks, but there is always a way around it. It’s time to start to get a grip on your finances and keep them in line, there’s no way you’re going to be a millionaire if you don’t know how to save some coin (see our other article on other ways to become a millionaire at “What can $2 buy you?”)
In the following article, we’re going to work towards teaching you how to create a budget, and stick to it. A budget is ‘an itemised summary of estimated or intended expenditures for a given period, along with proposes for financing them.’ or ‘ A systematic plan for the expenditure of a usually fixed resource, such as money or time during a given period.’ (theFreeDictionary, 2018). So, in lamers terms, it’s a document of all your savings and spending which you analyze to work out what you have
to spend and how you’re going to spend it.
The best way to create your budget is to:
1. Look at what you have to regularly pay for (groceries, petrol, rent, bills, phone plan etc.), when you pay for it, and how much it costs. It is incredibly important that you do this, otherwise, you don’t know what you’re dealing with.
2. Itemise those things from most to least important for example
$150 – Weekly Rent or equivalent $100 – Monthly House Bills
$100 – Weekly Groceries $100 – Monthly Phone Bill
$65 – Weekly Petrol $200 – Other Bills and Expenses.
3. It’s best to work hard to refine your weekly spending. What we’ve done which we find works, is creating a meal plan for the week, and doing a big shop for what we need once a week, and only going back if we drastically need something (like we run out of milk for coffee!). We have also stopped buying ourselves little pick-me-ups like iced coffees, a chocolate bar here and there, as well as straight out junk food. We don’t need it and it’s wasting our money!
4. Once you’ve done the above, you have to look at how much you’re getting paid weekly/fortnightly so that you know how much you have to play with after your important duties have been paid, which include: your rent or equivalent (mortgage/loan etc.), your house bills, and your food.
All of which must ALWAYS come first. Your Afterpay bill can wait, your house is more important. You have to learn to be tough on yourself so that you can afford the bigger, better things in life, compared to the insignificant ‘in’ things.
5. Save 10% of your paycheck each payday and put it away in an account with a high-interest rate and don’t touch it again. It’s a safeguard for your future that you’ll thank yourself for later.
There are a few free apps on the App Store/Google Play like Daily Budget Original, PocketBook and Wally that can help you with your budgeting, otherwise there’s a great app called Streaks which will cost you around $7 to download.