Checked out my last post? Here’s the budgeting guide I talked about…
10% Emergency Fund
10% Investment Fund
10% Retirement Fund
I got it from a Christian Discipleship Class that had a session on debt. It has helped a great deal. Some additional thoughts on my budgeting experience…
I find it easier to implement the guide by having all my transactions done on payday. It hurts to see your hard earned cash disappear all on one day but the peace of going through the month with all bills settled makes it all worth the while. It also allows you to anticipate and provide for incoming payments such as annual subscriptions or medical premiums.
PS: There are numerous budgeting templates online. The idea is to find one and – if it tickles your fancy – stick to it!
One of my struggles has been maintaining an emergency fund and this is the umpteenth time I am giving it a shot. I, however, try to pay my big ticket expenses such as rent quarterly in advance. One of the advantages it has given me over the years is to negotiate for discounts and also have a buffer for periods when cash flows are tight.
My latest realization is that math is fueled by formulas. If you get the formula right, ceteris paribas, the answer will always be right. And because budgeting is more about math than the creative process of art, it does point you in the right direction. The trick, however, is to keep it simple.
PS: I will be sharing my thoughts on each of the 5 categories in the next few posts or ten. Feel free to let me know what you think…