Budgeting as an adult

 One of the things that I can proudly say I'm good at is budgeting and financing my money effectively and efficiently.

I'm not a pro, neither do I use those fancy budgeting spreadsheets or nifty little Financing apps, it's just me and my notes literally.

Sad thing is that our education system doesn't teach us things like this which are an important life skill that everyone needs to understand, but don't you worry I'm here.

Why do I do budgeting and why do you need to start doing this as well though? Because I find that through a proper budget not only I can ensure that I ‘m not overspending on one thing and then understanding on the other,but also a budget has also helped me save money as well.

So what do you need to do for starters ?

Make a list of all your expenses which might look like this

Bills 

Travel expenses

Lunching and dining out

Shopping

Groceries 

Miscellaneous 

Now divide and distribute your earnings for each of the above mentioned categories for example, if your earning is 50,000 a month, divide it like this

Bills = 10,000

Travel expenses = 10,000

Lunching and dining out = 8,000

Shopping = 5,000

Groceries = 10,000

Miscellaneous = 5,000

Total = 48,000

Remaining 2,000 goes to Savings

Obviously this is just an example of how you can distribute your earnings, neither can you do Groceries only for 10k nor does anyone have bills expenses for 10k only, but you get the jist of it.

The whole point of budgeting is to stay within your financial limits, if you don’t allocate a budget for let's say Groceries, you will end up spending more money on it and lesser will be left for your other expenses, budgeting is not just allocating money but it also comes to being disciplined with your spending, obviously you might end up spending more than the allocated budget, but the goal is to be aware and mindful of your spending and spending power. 

 

Toodles.