THE BUDGET CHALLENGE: My Approach in my Financial Management | Recipe to Success

In response to @smaeunabs #thebudgetchallenge, I would like to share to you guys on how I manage my finances and to where it is allocated.

This challenge is not only interesting for it is an opportunity for me to earn here on steemit but also I considered this challenge interesting since I feel like this is a REMINDER if I am still sticking with my budget plan. Am I still on the right track in handling my finance?

Let me share to you an equation which I primarily considered in budgeting.

INCOME - SAVINGS = EXPENSES

Sometimes following this equation is really hard especially when my cravings tempt me. Still a WORK IN PROGRESS in applying this equation. The 50-30-20 Rule in managing my finance is also a great help for me now in achieving my financial goals. This rule was influenced by my bestfriend which is a financial adviser. And mind you, this rule  really helps me surviving for the next payday.

Below are the details on how I manage my monthly cash flow.

 

I believe that while I am still in my early 20s I should satisfy my wants now while I still don't have a great financial responsibility in the family so that is why I allocated 30% of my income to my wants. And also to reward myself in doing a great job, this will keep me motivated in working for my future goals. 

In my experience now, that 30% allocation is an excess budget for my wants. Since I have these 3 considerations before buying something that is only to satisfy my wants. First is Can I afford this? Second, Do I really need this? And lastly, Do I like this thing? (sometimes we really don't like that certain material, the urge to buy that is influence by the trends)

My 10% income is allocated to Emergency Funds such as hospitalization and the other 10% is allocated to my Long Term Investments such as Life Insurance, Bank Time Deposits etc.

Moreover, the 50% of my income goes to my expenses. Expense which are consist of the following:

I think my expenses now really consume great allocation in my income since I am just living alone and renting a boarding house. Sometimes, just to stick with my daily allowance I do cost cutting in my food budget and miscellaneous. Every payday, I go to grocery to buy all my needs for the whole month in order to save for atleast Php 200.00 a month. 

So, here is the breakdown of my daily budget:

Transportation : Php 40.00 fare back and forth

Meal Allowance : Php 60.00 will be my daily budget for my food (PS: I'm on diet now and I only eat veggies for viand.. Meat are for cheat day only, every after payday) .Maybe you can ask "Is that enough?" Definitely yes! In the morning I only eat 1 pc of boiled egg and for lunch I only buy viand which are veggies & I always bring rice.

Miscellaneous : Php 20.00 will be spend for afternoon snacks but most of the time I don't eat snacks so that Php 20.00 will be added to my budget for dinner or will go to my little cutie piggy bank.

I also have my excel workbook which is entitled as "Hannah - Bookkeeping Record"

This workbook helps me to monitor my cashflow. I will just input my income and my expenses comes with its corresponding transaction details. I formulated it so that it will automatically compute my cash on hand.

So that would be all for my #thebudgetchallenge by @smaeunabs. My apology, I'm not really good at explaining when it regards to my finance management. 

Thank you for spending time in reading my #thebudgetchallenge. God Bless!

Regards,

@abchro