My Simple Budget.
My budget has 5 Segments to it that allow me to cover my Bills, Save, Invest, Eat, and pay off Debt (not in order of importance/expense).
Section 1: Core Expenses
My monthly expenditure on Bills and Necessities is a total of £750.00, which when divided weekly is just at £173.00 a week (assuming 4.33 weeks/month as I get paid weekly).
This covers Rent, Council Tax, Heating and Energy, Phone Bills, and Wifi. All these bills come out at the end of the month, ensuring that I am able to ‘save up’ in a ‘Pocket’ until i need to withdraw them, and my bank gives notifications the day before bills are due to go out, allowing me to withdraw from the ‘Pocket’ and have ready to be debited the night before.
Section 2: Consumption
I tend to spend a minimal amount and split groceries with my flatmate, and we cook for each other. As such, we tend to bulk cook, consume lots of vegetables, and rely on staples like Rice, Root Vegetables and Pastas, minimizing meat and sweets consumption. This usually amounts to £100.00 a month, or anywhere from £20–25 a week on grocery shopping, hygiene/cleaning/etc, and the occasional drink.
My workplace (I now work in an office, as it provides me a reason to get out bed in the morning and have a routine) provides free coffee, and I rarely eat out.
Section 3: Contrition (I’m going for an alliterative theme here)
I do have some debts, and while I would like to wish them away, I would also like to have an Emergency Fund built up. As such, for the time being I am balancing the two, by not throwing my entire disposable income at them.
Admittedly, this is a costly Endeavor, but I would rather have an emergency fund at the end of the day rather than have to go back into a debt in some horrible roller-coaster ride I’d likely never get off. As such, for the time being, I keep it at £64 a week to debt servicing.
Section 4: Conservation
Here is where I put £50 a week into a savings pocket for short and medium term goals, as well as building up an Emergency Fund.
Section 5: Confidence (in Goals)
This is where I do place some money into long term goals, such as an ISA, Retirement Fund, and Mortgage Deposit. I will confess that it is spartan at the moment, but it feels good to know I am at least putting something towards long term goals, even if it means i’m only putting £20 (£8 ISA, £6 LISA & Pension each w/out Government Top-ups) a week.
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This budget all together works out to £328.50, when my Weekly After tax income is £330.00.
And there we have it. A simple budget with 5 segments covering most needs and wants.
Some might swap Savings for Shopping, or not have debt to service, or already have a comfortable Emergency Fund.
In which case, You probably didn’t need to read this article. However, to those overwhelmed with budgeting and calculating every penny, I hope that my method gives you something to contemplate.
Shalom Y’all, and may you have a good weekend!
