The idea of limiting your spending doesn't seem fun, does it?
Well, it's not, but for a vast majority of people, it just has to be done.
The thing is, even though it's a pretty essential skill to have, creating a budget that actually works isn't something they teach us in school. We're expected to figure it out as we go along, which generally leads to overspending time and time again.
I'm going to be honest with you. I wanted to write this blog post to give you my personal budgeting technique. I actually had a draft detailing it all ready to go... until I realised that I haven't even been using that technique myself for the past few months. It was too rigid, and with my income at the moment varying monthly, it just wasn't working for me anymore. So, instead, I'm going to be giving you a handful of tips I've found helpful, so that you can find/create the best method for yourself!
• If your monthly income is relatively stable, it's a good idea to add any possible multiple avenues together so that you know what you're working with, i.e. add up any wage, stipends/grants, and any other monetary income coming your way.
• If, like me, your income varies from one month to the next, try and at least get a general idea of the final amount - leaving some wiggle room just in case.
• Keep in mind any compulsory spending, ex. rent, food, transport, school/university/work supplies, etc.
• Depending on what's left after deducting your necessary spending from your monthly income, choose how much you want to set aside each month. How much you want to save obviously depends on your current goals, but it's always a good idea to start saving up - even if it's just a couple of Euro a month.
• Keep track of your finances. You can do this by using a spreadsheet, downloading an app, or even writing it all down manually.
• Be flexible. Don't be too hard on yourself if you don't reach your goals - you can always do better next month!
With that being said, I hope today's post ends up being at least a tiny bit helpful. Remember, it's a learning curve, so make sure to keep at it until you find the perfect method for yourself!
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