Oh, this is an interesting little writing prompt. In my experience, people tend to get a bit squeamish when the topic of money comes up. I am not one of those people, so let’s talk about it because we are all on the same sinking ship known as inflation.
Around the end of last year I have implemented a new budgeting system for myself because I was tired of being broke 3 days before my next paycheck when the cost of everything went up.
I divide my expenses into essential, basic and treat-yourself. I try to not put to much of my money towards the last category because very often I go overboard. Last year I investigated my bank app a bit because I needed a way of getting money out of my account without actually withdrawing it or putting it into a savings account I cannot use whenever I want and I found this virtual piggy bank feature in the app which is saving me from myself on a monthly basis. Basically, I can put money in this virtual piggy bank and take whatever amount I want, if it’s necessary. My money is technically on my account, I just cannot use it when I pay with my credit card or withdraw it at an ATM unless I go into the piggy bank and transfer a certain amount back so it’s visible to me.
Once my paycheck comes, I first calculate my essential expenses which are utilities, rent, my phone and other stuff I have to pay. That money stays on my account so on the first of the month I pay my rent and I pay the utilities when they come.
My basic expenses are food, hygiene products, cleaning products, skincare etc., basically anything that I use on a day to day basis. I set a strict amount of money for each week, four weeks in total until my next paycheck and I try to stick to it. There are of course unexpected expenses every now and then but I always try my best to stay within my weekly budget.
Everything that is left after the essential and basic expenses is treat-yourself money. I put some of it aside for my savings and the rest I use when I see necessary. For example, I will never decide to not go out, go to the theater (which I love) or plan a trip because I want to save money. I work hard for it, I deserve to treat myself. When it comes to other stuff I often like to do as a little treat, I always make sure that I actually need it. This mostly applies to going shopping for new clothes or buying stuff because I see it online and I want to have it etc. I always try to balance out what I need vs. what I want just because. Whatever is left in my treat-yourself budget before my next paycheck comes, gets put into my savings.
I am also a person that has the patience and drive to look for deals, discounts, and to wait for sales. I just had a small shopping spree this month and everything I bought, besides a pair of shoes, was on sale. For example, I had to buy new trainers and I had to really invest in them because I have some health issues. I went to an orthopedist and he explained everything for me and I had to get a special type of running shoes that cost over 200€ in the store. I found a pair that had the same quality and characteristics for less than 100€ online. So, I always take my time to find the best deal on everything.
This has worked great for me so far, I think it’s a good system, especially for people like me who live alone, don’t have kids, mortgages etc.
I hope it inspired you a bit, if you are struggling with your finances. I don’t know if there are people who aren’t struggling with money right now so it’s important we speak openly about these things.
What are your budgeting tips and tricks?
Love,
Luna
If you like a bargain, I am giving my poetry book for free for a limited amount of time: Identity crisis
Come cook with me over on YT:
I’m having a battle with myself at the moment, I’m saving money. But darn if it wasn’t for those beautiful, beautiful shoes in L K Bennet, I’d be home and dry. Generally, I’ make shopping trips fortnightly and I’m very careful and particular in what I buy. I rarely dine out and I’m not much of a drinker either. Trying to save a little every week.
I never had the habit of eating out, but I did tend to order quite a bit sometimes. Got rid of that habit as well because the food delivery apps became very expensive last year. It makes more sense to go to the restaurant and eat or simply make it yourself.
I stopped eating takeaway food over a year ago. Even that’s expensive, but for a better diet too, Like you say, home cooked food is better.
Our best budgeting is with food. Every Sunday morning, we make a menu for midday and evening meals. My wife goes through each recipe, and we buy whatever we don’t have. No more, no less. We almost never throw anything out. We rarely eat meals outside of the house. We have seeds, nuts, pretzels, and dried fruits and vegetables for snacks. There’s one large chocolate bar in the fridge. There are currently no M&Ms.
I do a similar thing, I will always see what I have and then plan my meals from it and buy only what’s necessary. My current sweets obsession are snickers peanut butter bars and I never run out of those 😅
This was a “just in time” blog post. My husband and I are planning to create a new budget today, and your three categories is quite helpful to me wrapping my head around it!
I am glad to hear it was helpful, good luck with your planning!
Nice post