GIRL DO BUDGETING
Hey you there. Have you ever heard of the words “BUDGETING”?
Most of people only know how to earn for spending money. But
only little of us learn how to manage the money wisely. Concerning the value of
your lifestyle while having good balance bank account. We can categorize the budget into
some points:
1.
Loan and Debt payment
2.
Basic need (Groceries, Food, Petrol, Rent/ Household,
Phone)
3.
Primary (Insurance, Saving, Sinking fund)
4.
Miscellaneous (Gift, Charity, Subscription,
Vacation)
In order of fulfill all of our need, we should put some percentage of our income and strict to following the rules. Ideally, lenders prefer a debt-to-income ratio lower than 36%, with no more than 28% of that debt going towards servicing a mortgage or rent payment (https://www.investopedia.com). Next, move to the 3 rest of our home paying wages. The biggest outcome will going to basic need, since we have to pay rent and buy the household, buying food, transport to the office, credit for mobile phone. The amount of basic need can take up to 50% of our income. It may be vary for every person, depend on their general condition (married/single), location of our house, and lifestyle (quality and personal preference of product's for consumtion).
The other important thing (Primary Fund) to have are: insurance
(such as health, life insurance, car insurance), saving for any goals
(emergency fund, buying house, retirement), and sinking fund (electronic
renewal, party and special event). The primary fund maybe optional for some
people, but for me it’s also categorize as essential. For example, nor of us
can left the payment of health insurance, retirement fund, buying new gadget
and etc. So, put 20% budget of your income into primary fund is never be wasted.
Last but not least miscellaneous things. Personally, in
modern society we will always face the reality that entertainment and fun activities
are the part of life. Finding some relax time by watching TV show and listen to
decent music, the budget must go on the subscription. When we get invited to a
party, we should bring along with some gifts. Having a sympathy through charity
is also important, in our circle like family, colleague, or close friend
sometime we need to helped.
In holiday season, we always dreaming of having vacation.
Road trip, flight, or even train as transportation. The ticket, food, and new
clothes will take some amount of your money. Please mind the vacation as part
of your budget too. If we depending on the credit card, we will pile up the
debt and increasing the number. Your statistic of monthly outcome will get
affected in the future.
The study of money budgeting is quiet new for me, I simplify
the theory as 50:30:20. We can assume 50% of income allocated for basic need,
30% for primary fund, and 20% for fun and etc. In my case, I am a single woman
in late 20’s, I have stable job and no debts. Another different aspect can be
found, like I must send some money for my parents and my little sister’s
education. So, I will take the budget from my 20% of my income. I can endure
myself for the fun aspect. Since I am living abroad and not occasionally
having subscription. I find affordable and healthy hobbies, like jogging and
hiking. Quiet simple and refreshed for my busy life.
Being discipline and stick to the rules will keep your healthy relationship with money. It need commitment and trust of yourself that you can live your life with certain number of budgeting. The psychology of spending habit must be evaluate again. Take pleasure after you finish the urgent payments. It's absolutely right to make a distance with social life when you struggle with your own money problem. Instead of failure, we can set boundaries and be persistent to hold the capacity.
Here some friends from social platform
which lead me to find some spirit to do budgeting. Mentioning my most favorite
persons:
https://www.instagram.com/budgetjonesdiary_/ 💗
https://www.instagram.com/myringgitbook/ 💗
https://www.instagram.com/mywealthbook/
https://www.youtube.com/c/DeviMelissa/
Those all are my some
simple words of finding peace in adult human life.
Be wise on your money and you will be grateful person.
If only you want to know how's my monthly budgeting track, don't hesitate to contact my email rizkaamalia0313@yahoo.com. I will send you the excel soft file and the explanation by video.
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