Let’s Talk Money

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I’ve mentioned before on this blog that I used to be terrible with money.  I used my credit card like a second bank account and I was always in my over-draft by the end of the month.

Fast forward to 2017 and I now manage to save 51% of my income and I’ve stopped filling my home and wardrobe with items that I do not need.

I’ve managed to do this not only by practising minimalism but by setting myself a monthly budget for EVERYTHING.  I pay monies into my savings account first before I budget out what I have left.  When I first started doing this I had to work out what the minimum amount of money was that I could live on and then made the decision that I would save the rest.

It took a few months of recording what I was spending my money on, analysing it and working out what was necessary and what was a waste of money.  I knew after these first few months what my budget would need to look like and realised that I could save some serious money for my future.

I don’t feel comfortable sharing information about the figures but I thought it might help others if they see exactly what I budget for in a month.  Not every item listed is used every month but these are the items in my template.  For example if I know tax or an MOT is due for my car I’ll add a budget for this for that month and adjust something else.  There are other ways to budget that may suit you better I.e create a budget for the whole year but as I have been building an emergency fund I find I can set a budget just for the month in hand.

First up are household bills.  These are committed costs and are the first thing I budget for.

HOUSEHOLD BILLS

Rent

Electricity / Gas

Council Tax

Internet/Telephone

Mobiles

Water Rates

Car Insurance

TV License

Contents Insurance

Next is savings and an emergency fund.  The main reason I need/want to save so much of my income is to facilitate buying a house.  We’re hoping we can do this by the end of this year.  I’ve also been putting a small amount of money into an emergency fund for just in case situations.

SAVINGS

House Deposit

Emergency Fund

The rest speak for themselves really but notice what I have left till last (Life, etc).  This is where the room for changing my monthly budgets comes from.  What I have available for entertainment and gifts for others completely depends on my other expenses for the month. 

FOOD

Groceries

Work Lunches

Restaurant

Takeaways

TRANSPORTATION

Fuel

London Travel, Taxi’s

Tax, MOT, Service

LIFE, ETC.

Personal Care

Clothing

Entertainment

Gifts – Bdays & Xmas

Misc./Cash

I don’t budget for holidays at the moment as we don’t have any plans for booking anymore this year.  This year is all about saving for a house deposit and that’s okay with me.  We already have a long weekend planned in New York in June and a long weekend on the Isle of Wight in May to look forward to!

How do you budget your income?  What financial goals do you have right now?

 

5 thoughts on “Let’s Talk Money

  1. jessicaconstable says:

    The main thing on my mind right now is paying off debt. I’ve always been really good with money (if I don’t say so myself) but I still lived a consumerist lifestyle. Since falling for minimalism and also taking a year out of sorts, I’ve become more aware of what a burden debt can be. At the moment I have student loan debt (that gets deducted from my salary when I earn about a threshold), my mortgage and £1000 on a 0% credit card that finished up this month. I will pay this off with savings (I used the credit card as a ‘stooging technique’ (gaining interest on savings while having a 0% loan)). I plan to go back into regular employment soon and will definitely be more conscious of putting aside savings and corroding debt.

    Like

    • reynoldsmade says:

      Hi Jessica, good luck with your debt repayments. Debt is such a heavy burden so hope you break free soon! I also found minimalism really helped me with spending habits and they kind of changed automatically the more I developed minimalism. I wouldn’t like to be without an emergency fund now as you never know what’s around the corner. Good luck going back into regular employment 🙂 x

      Liked by 1 person

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