Are you familiar with a situation where money runs out much earlier than the planned salary? If the answer is yes, then the advice of experienced professionals will help you. See how you can allocate the budget and reduce costs. This will give you the opportunity to approach the date of receipt of monthly income without debts and with bonuses.
Method number 1. 50/30/20
This method involves the distribution of money as follows: 50% goes to the necessities, 30% - for what you love, and 20% - for financial purposes. Let's see what these numbers are. For example, 50% is the following expenses:
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utilities;
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telephone, internet;
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mortgage / rental;
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insurance;
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car maintenance or public transport;
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nutrition.
All this should fit in half your salary. If you plan all expenses correctly, this will be a great opportunity to save another fifty percent on the other two points. One of them is 30%, and this is your spending on pleasure. They include:
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clothes;
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cosmetics;
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accessories;
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spending weekends (vacations, short vacations);
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concerts
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sporting events.
The remaining 20% is your investment: a short-term or long-term deposit, credit card replenishment or just keeping money at home in a treasured box or in a safe (this is for those who do not trust banks). You may find that this distribution is not entirely convenient for you. Then you are invited to do as you want, for example, by distributing interest on the principle of 60/20/20 or choosing any other option.
How it works
This method is great for people who need guidance on maintaining a balanced investment and paying off debt. If you constantly exceed your discretionary expenses, this budget will limit you where necessary, and each item will reasonably work in your favor. After all, thirty or twenty percent are a rather generous allocation for your pleasure. Try this method and draw conclusions for yourself. Experts called it one of the most effective, so you should pay attention to it.
Method number 2. Budget with a zero base
If you do not like to save money, prefer to live in the present day, but want to live without losses until the next paycheck, then this option is for you. The goal is: make sure your monthly income minus your monthly expenses (including deductions to savings or investment accounts) is zero. There should not be any money left at the end of the month, and no debts (this is important). To get started, analyze your credit card bank statements and receipts over the past few months to understand how much you spend in budget categories. Then define a spending limit for each of these budget categories. You may need some time to experiment a bit with numbers until the amount of income and expenses becomes zero.
Example
Consider the detailed instructions for using a zero-base budget using a specific example. The basis is a salary of twenty thousand rubles (let's take a small budget, since the regime of the correct distribution of finances is primarily interested in the category of people with low incomes, for example, students). This money will be distributed as follows:
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hostel rental and utilities - 7,000 rubles;
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Internet - 400 rubles;
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car maintenance (transportation) - 2 000 rubles;
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food - 4,000 rubles;
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clothes - 2,000 rubles;
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personal hygiene items - 600 rubles;
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gym membership - 1,000 rubles;
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entertainment - 2,000 rubles;
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stream spending - 1,000 rubles.
How it works
The above are approximate figures that each of you can adjust as you wish. It depends on the region in which the person lives, his income and priorities, so the amount may vary. But the basis of the principle is to calculate every penny (without exaggeration) and not spend more than planned. When using this method, it is necessary not only to distribute the budget, but also to write down each item of expenses, taking into account all the little things.
Method number 3. Bare budget
This option is in austerity mode, when money is not provided for entertainment and unplanned purchases. It works very simply, because you need to recall only those main items of expenditure that you cannot do without. For example:
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payment of utility bills (rent);
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loan repayment;
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transportation costs;
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nutrition;
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clothes;
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detergents.
How it works
This method is suitable for those people who have a lot of credit or a desire to save more money for expensive acquisitions. Since a bare budget limits all entertainment, you can replace them with free rest. Using the article "Products", you can easily set the table for friends by buying products in the store and preparing everything yourself. As walks, choose parks, exhibitions and other events that are now offered in any city and in large quantities. The advantage of this method is that after a short amount of time with a reasonable approach, you can see a significant amount of money in your wallet and at the same time not feel any deprivation.
Method number 4. Investing
This principle is suitable for those who want to save a decent amount of money for a serious investment. This refers to the acquisition of good housing, their education and children, trips abroad, holidays in exotic countries, etc. This method works on the principle of 50/30/20, but is distributed as follows: 60/40. That is, sixty percent of the budget includes absolutely all expenses, and forty percent remain untouchable. Not everyone can afford to put off such a huge percentage in the stock, which is untouchable for some time, but if you have such an opportunity, be sure to try it.
Envelope Example
A reasonable solution would be to use the envelope method in this method. The sixty percent that you left on all expenses must be distributed by articles. To do this, you will need only cash, since with non-cash this option is not possible. Set aside amounts for utility bills, meals, entertainment, and other necessary and important expenses for you. All money should be spread out in signed envelopes and in no case should flow from one to another. If you plan to increase one item of expenses this month, do it right away so as not to violate concepts. Try to live on sixty percent, and forget about forty temporarily.
How it works
As you already understood, this method will be most effective if your goal is to accumulate money for serious investments. If you do everything right, you will have many benefits. In any case, you will live according to the plan (since sixty percent also need to be correctly allocated), and this disciplines, develops willpower and does not allow you to excessively relax. Plus - you can save up a decent amount of money in order to fulfill your dream.
Instead of a conclusion
View all suggested options. At least one of them will definitely suit you. Experienced experts have not in vain calculated everything in this way, because only with this approach will everything "work" so that you become richer and happier.Do not waste your time and start planning right now. You will surely succeed.