Adulting is no fun, they say! I mean, I get a lot of responsibilities- personal life, career, and even relationships. But the least fun of all is paying for bills! Bills can take up much of my salary, and I came to accept the fact that it is part of this adulting thing I signed up for. But you know what, just because I have bills to pay does not mean I have to struggle financially! As an adult, I learned how to be smarter with my finances, which is a huge help with planning my personal budget. And yes, I still get to party on weekends and regularly travel- all thanks to setting my personal budget. Let me share some tips!
Setting a personal budget is a life hack that everyone should learn as soon as they start earning their monthly salaries. Lucky me, I have been taught early on not to spend my earnings mindlessly and to give in to my impulses. With the right amount of discipline, budgeting can even be fun! And when done right, you can avoid debts or shortages, which can lead to bad credit. The good thing is there are short-term financial solutions to help with this. But that’s for another day. For now, let’s get onto planning a personal budget:
How to Plan Your Personal Budget
Prepare a tracker or get a budgeting app
First things first, I record how much I earned for the current salary cutoff. By doing this, I will have an overview of how much money I have and can spend. I do this via Google Sheets, but there are also budgeting apps on the phone! It can be as simple as setting the table and then starting with your current pay. It has become my habit to regularly update the sheet with every expense I make by the end of the day.
Log all of your regular expenses.
Now that I know my money for this cutoff, what I do next is record my recurring expenses such as bills, groceries, or loans. I automatically deduct and pay these (if available online) to avoid lapsing. Think of this as being a responsible adult. I take joy and comfort in knowing I have settled all my monthly responsibilities before spending on other things.
Set aside an amount for the Emergency Fund.
This next step is overlooked by most! Learn how to save up for your emergency fund. The rule of thumb is to have at least twice your monthly earnings. You’ll never know when you will need it and forget you have this fund to avoid impulse buys! I opened a different account for my Emergency Fund alone.
Chip off an amount for yourself!
Lastly, I treat myself whenever I finish setting up my budget for a certain period! I mean, I work to live! I either get a nice meal and pamper myself with a massage or if I have saved enough, I go on regular travels.
In this economy, planning a personal budget should be a must for us earning individuals. Gone are the days when we mindlessly spend on our impulsive desires. I do hope this article helped you to become smarter with your finances!