So not that long ago, I was terrible at managing my money, I would spend more than I have and buy crap, and that is why I never have anything saved up.
I have since then become a grown-up ... finally, and started budgeting, the way I do it now it works out I can pay myself twice sometimes thrice, and then save/invest that each month.
First of all, I am fortunate that my 9-5 is a standard salary each week, it only crept up the last few years. But I used to always think that I could not afford to save with my wage as it was, that was merely an illusion because I was buying pringles and energy drinks on a daily basis, so budgeting was needed.
Payment 1: any extra than your basic this month
My salary does change slightly if I work a couple of hours overtime, or if I work a weekend I get an enhancement. But I don't consider that in my budget, then the months that I do work extra, that is bonus money, as we like to call it in our house and it can go straight into the savings pot. Boom first payment to myself.
So I have established a basic salary, this is the money that needs to cover all my bills and expenses, now anyone who knows me will know that I love a spreadsheet, there is literally no problem in the world that cant be solved with a spreadsheet and a cheap graph. So start off putting the minimum salary at the top as your income.
Then work through all of your expenses, rent, tv, phone, food, water, electric, gas, Netflix, Amazon, Disney, car insurance, any debt, anything that goes out of your account each month. Stuff like food, give yourself a food allowance based on what you normally buy and stick to that. Then make sure you haven't forgotten anything, petrol was always the thing that I would forget, and then for the last week of every month, I'd be walking everywhere. There is also the things to budget for that are annual purchases, so for me, I have a registration fee for my job that is paid annually, every year it catches me out and it makes me poor.
So to stop that any fees like these I account for divide it by 12 and make sure that each month I out any money for annual fees into an e-saver linked to my account ready to go, if I have to stay in my job another year, or if I haven't got fired for sarcastic shout outs during staff meetings. This way you won't get caught out and there will be no surprises.
Payment 2: what's left after your budget?
Tally them all up, and subtract that from your income, hopefully at this point you've still got a little bit leftover, if not go get your boss to give you a pay rise, or think about if anything needs to come off, but hopefully, you should have something left.
Then and this I've found is important, budget for your treat, I always budget for my takeaway day, and a couple of nights of beers, because if you're not putting aside something for those little treats, or little extra treats for the kids then what is the point, life is for living at the end of the day. Yes, you might be being frugal, but don't be that guy or girl. You will also be much more likely to stick to your strict budget if you have accounted for those bevvies that you're looking forward to so you don't go absolutely clinically insane.
Now after that last deduction what is left?, take half of that and pop it straight into your savings boom done you've just paid yourself the second time.
Payment 3: Do I really need that bounty?
Then there should be a little bit more left in there as well, I keep this money aside, in case I need a second emergency curry, or I need to get the Mrs a present after I have severely upset her because I've watched the boro game instead of married at first sight. Or she's had to listen to how we will be homeowners in 4 years if she stopped eating Mcdonalds thrice a week. These are all very likely occurrences.
But your target is to look at that extra money, each time you're going to the shop for the extra things to dip into it, do you really need it, do you? DO YOU REAAALLLY?, some days you will need that mars bar, others you won't, but whatever you have left of that budget, on the last day of next month, you pop all of that sweet money into your savings account as well. If you succeed you have paid yourself a third time.
Don't feel bad if you don't succeed you have still done a much better job by having a budget.
This is just what I do, but I remember when my money was spiralling out of control, reading something similar and thinking, right it is time to sort my fucking life out. This may not be your method but there is massive value in having a budget, it keeps you grounded and rule 1 DONT FORGET THE TREATS.
If anyone wants any help on where to get started, or what to do let me know and if I can help in the form of a spreadsheet, then well I'll be so fucking happy. Ah, gridlines.
Anyway hope this rambling was helpful for you.
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