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Tips To Start Budgeting Your Money In 2020

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Having sufficient money is a major concern for most young adults.

I personally think adulting is about “how can you manage your money”?

Because if you can’t do it properly, that will be the beginning of everything going upside down.

You have to learn how to ration your money to meet your needs and responsibilities and pay all your bills on time.

I have never had a budget before 4 months ago but despite that, I was always good with my money.

To me, it’s not such a hard thing to do because I am minimalist but no matter what your life choice is, you can learn how to save your money and use it properly too.

 

 

How To Start Budgeting Now

 

1. Write Down Your Monthly Expenses

The first thing I did was write down my income after tax on the left side and every single bill that had to be paid monthly on the right.

The reason why I did this was so that I can easily refer to my income and write down only realistic expenses proportionate to my income.

I subtracted my expenses from my monthly income to see what I had left for savings.

 


 

3. Get A Savings Account

Very crucial, you need to get a savings account in order to save your money properly.

If you are battling with self-control on spending, have that saving account at another bank with no debit cards to it.

That should discourage you from spending.

I have mine all in one bank but it’s okay to open accounts elsewhere for the purpose of saving.

 

 

3. Start From Zero

This was how I started so I could have saved some money prior to budgeting.

Starting from zero means that in your first month of budgeting, all of your income minus rent and crucial bills (phone, car note, insurance, and all credit card bills) all go into saving. 

I started this way because for me I started budgeting so that I could save money.

There are so many reasons why people budget but shockingly not everyone budgets to save. 

 

 

4. Not All Months Will Be The Same

To make budgeting purposeful, you have to realize not all months are going to be the same.

You won’t be able to save the same amount of money every month.

Part of the advantages of setting a budget is to prepare for unforeseen circumstances and months that you tend to spend a lot (October – December).

The only way you survive these periods is because you have ‘started from zero’ so you’ll always have back-savings.

Another tip is to save all you can in slower months so you’d have saved a lot for when you need to do something urgent with money.

 

 

5. Give Yourself Some Monthly Allowance

The idea of budgeting sounds very restricting but it doesn’t actually have to be.

Give yourself some monthly spending money that’ll allow you to spend time out with your friends at least twice a month.

Otherwise, you can feel stifled and that can make you quit the whole process.

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