6 easy steps to save your sanity [and budget]!
This is NOT an expert opinion, it is merely the method I have found to make sense of the never-ending pile of bills and maybe save a little for something good. Before we begin we need to know what is required of our budget by way of regular bills. To do this you will need to collect at least 12 months worth of accounts from regular sources [eg utilities, rent, rates, vehicle expenses and of course the INTERNET subscriptions] Next we need to know what our income is - this will be easier if it is a regular, set income. If you receive overtime etc, try to work without these, or at least average them and reduce by 20% in case of unexpected. Now to begin;
1. Take the total of your 12 months bills and divide by the number of pays each year [ie 52 weeks etc] this is the amount required to put aside for paying your bills each pay
2. Using the same method set aside an amount to cover any loan repayments or other fixed payments you are required to make.
3. Subtract these two amounts from your take home pay [net].
4. Working with the remainder, decide how much is required for staples: eg groceries, fuel, kids etc.
5. Decide how much you would like to save each pay. This doesn't have to be much, a small amount on a regular basis can add up to a lot if you DON'T spend it.
6. Is there anything left? This is your weekly 'pin' money, no strings and no obligations. To complete your budgetary plan, you need to have a strict view of what is needed each pay day and that you put amounts 1-5 away where they will NOT be frittered away. This may be in different bank accounts or jars in your kitchen, you choose your best option.
Remember #1 will pay bills as and when they come in so you don't have to worry. #2 will cover payments on the car etc so you'll never worry about repossession.#4 will put food on the table and fuel in the car as well as get those "extras" for the kids.#5 is the best of all, you can save for a holiday, a special present for someone or just a rainy day.
Great article, Editor.
Rating: 4.33 (6 votes) - Added: 26/2/2005
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