Thursday, 10 March 2016

Fortnightly Budgeting and Saving Report - March 1st Fortnight


Fortnightly Savings Report for First Fortnight of March

Expenses for the next fortnight:
Groceries
$100
Entertainment
$100
Monthly utilities
$150
Private Health Insurance
$40
Savings this fortnight
80% of my income


Read below on how to achieve that :)


As part of my money management practices, on every payday,
I spend roughly ten to fifteen minutes to manage my money for the next fortnight. In my money management and budgeting practise, I emulate the ‘envelope system'.

This is part of my budgeting routine (money management practice) that helps me to stick to my budget.


Read through to find out how I save on average 75% of my income consistently year after year.


Tools needed:
  1. Your netbank
  2. Your personal calendar
  3. Your completed budget planner
  4. Your expenses for the next period (fortnight)
  5. Pen & paper (optional)

Time: 10 - 15 minutes


So let’s budget and let’s save. So what I do first thing on every payday?


Firstly, list all expenses for the next fortnight. This will only take 5 minutes.
For example, these are my  real expenses:
  • Groceries $100
  • Entertainment $100
  • Monthly utilities $150
  • Private Health Insurance $40


Secondly, transfer the funds into a high interest online account attached to transaction account. This way, you get some benefits for parking money temporarily.

Label them on the transaction accordingly, “groceries”, “entertainment”, “utilities” and “health insurance”.
This is like putting the money into the envelop, in the ‘envelope budgeting system’.

And, when the expense is due, the fund will be automatically transferred into the transaction account to be direct debited or automatically transferred.

The purpose of using the envelope budgeting system is to make it easier to track your expenses.

How easier it is (to track your expenses)?

For fixed expenses, it is very easy because the fund is fixed and the creditor will direct debit on the due date. So put the fund into the account, label it & leave it there (untouched), and it will be automatically direct debited or transferred.
But for flexible expenses, such as groceries and entertainment/socialization expenses, it is slightly more difficult, because there is no limit placed for the expenses. This way, to impose a limit on the flexible expenses, personally withdraw the money on Friday, for weekend socializing and grocery shopping. And put the cold hard cash in the wallet. If the money runs out, that’s it, there will not be anymore money until next payday.

Personally, this strategy helps me a lot to achieve my 75% per year savings rate.


Lastly, after allowances have been made, I transferred all savings into a saving account that I cannot touch.


By putting the money aside into an high interest saving account and leaving no float, I give myself no temptations for itchy finger to trigger impulsive purchases.


What is good about this money management strategy is:
  • easy
  • non time consuming
  • no need to spend much effort on it
  • no need my spendings
  • no need to install or pay for an app
  • no need to track my expenses
Yet, it is effective. I save consistently 75% of my income every year.

how to save $130,000 in less than 3 years on below average income


Fortnightly Savings Report


Expenses for the next fortnight:
Groceries
$100
Entertainment
$100
Monthly utilities
$150
Private Health Insurance
$40
Savings this fortnight
80% of my income

This fortnight’s savings rate is high because many expenses will only be due in the next fortnight.














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