I want to share with you how I budget my semi-monthly payout using this 50, 20, 30 percent formula. If you want to learn something lalo na if your goal is to have a savings let say for your emergency fund/travel funds, you need to follow this steps.
1. First, you need to identify your own expenses. Yes! have time to talk to yourself :) grab a pen and paper jot down all your daily expenses, your monthly bills, from the big items you bought this week/month until from the very small items that you bought today in sari-sari store hehehe. I know it will take time but i'm sure in the end of this steps you will realize something.
2. After you identify your expenses. Categorize them, is it essential, future or lifestyle? Oh by the way, you can also do this in excel too. ;)
50 percent is for essentials - groceries, house/rent payment, transpo/car Payment, gas, phone bills, water bills, electric bills
20 percent is for future - emergency fund/insurance/mf/stocks
30 percent is for lifestyle - travel, eating out, gifts, shopping
1. First, you need to identify your own expenses. Yes! have time to talk to yourself :) grab a pen and paper jot down all your daily expenses, your monthly bills, from the big items you bought this week/month until from the very small items that you bought today in sari-sari store hehehe. I know it will take time but i'm sure in the end of this steps you will realize something.
2. After you identify your expenses. Categorize them, is it essential, future or lifestyle? Oh by the way, you can also do this in excel too. ;)
3. Now, this will be the formula on how you will budget the said categories in # 2.
50 percent is for essentials - groceries, house/rent payment, transpo/car Payment, gas, phone bills, water bills, electric bills
20 percent is for future - emergency fund/insurance/mf/stocks
30 percent is for lifestyle - travel, eating out, gifts, shopping
Make sure that you will not overspending your essentials/lifestyle. And remember you MUST SAVE at least 20% of your payout. Anyway, that is why we are doing this, so you will be guided. :)
Update your list when you receive your payslip. Eventually you will see the result at the end of the year. Especially if your goal is to have a savings. Congratulations! you are now in progress to achieve your goals! :))
The below computation is only an example of employee range Php11,000 net per month.
If you religiously save for 12 months, a total of Php 26,400 in savings is not bad right?
Walk the talk!
