6 Items You Should List for a Quick Personal Budget Plan
Not everyone loves to sit down and plan their personal budget. In fact, most people won’t even like assessing their current financial situation and creating a budget plan even if they direly need to do them. If you’re one of the people who are mentally drained with numbers, here are the important categories that you’ll have to briefly go through to assess your money situation immediately and do your planning quickly.
This should include everything that you are receiving in fixed amounts like salary and pension. If you’re earning a certain range such as the case of commissions or personal business sale, consider listing either the lowest amount or the average because you’ll tend to overspend or over-budget if you’ll list the highest possible amount you’ll receive.
Savings or Emergency Funds
If possible, make it a habit to save at least 10% of your income first before anything else. Consider putting it in a bank so at least it can earn you interest income, even if it’s just a tiny percentage. It’s better than earning no interest at all when it’s in your piggy bank.
Make your budget realistic by making sure to list down all the possible daily expenses that are important such as meals and transportation.
Take note of monthly bills like the rent, electricity, water, gas and home maintenance services so that you will be able to set aside money for them. You don’t want to miss their due dates and get into trouble for not paying on time, right?
There are just some things that you have to buy or else you won’t have the confidence to go to work, meet clients and other activities that will help you earn money. So make sure to set realistic budget for your toiletries, vitamins and other personal stuff.
Enjoyment and Fun
Everyone needs a bit of fun, even those who are on a shoestring budget. You don’t have to deprive yourself the things that modern life can offer. In fact, you should have a reward for making the step to be conscious with your finances. Consider setting a certain amount for a once-a-month trip to a movie house or a monthly dinner at a fancy restaurant you love.
By quickly jotting down the numbers for each of the categories mentioned above, you’ll get a rough overview on your current situation and on how you can plan for your budget. And always remember that if your income is lower than the total amount of the rest of the items, take a closer look on how you can reduce your expenses. Perhaps you’re spending too much on enjoyment? Or maybe you’re eating unnecessarily expensive meals? Or perhaps you don’t actually need your cable subscription?