waddup
I kinda want to jump straight in about budgeting, about money.
Let’s talk money, straight up.
So, as I’ve quoted in past posts, I don’t think you can necessarily say what I do is budgeting.
“I take my monthly income and subtract my monthly expenses and whatever’s leftover I spend on my miscellaneous: gas, grocery, groom”
And—the bills are paid great, wants are met, fantastic. Well, I’d say maybe 75% of the time my wants are met. But—that 30. And yes. I also said. 30/30/30/10– forget the damn percentages at this moment.
If I want more money, then I should do better with what I have now. That’s where we’re going.
This young woman on instagram said that saving should come first. And, I think that sounds like a great idea.
So. No more waiting for that higher income, I gotta look at what I’m doing now.
That starts with building an actual layout.
I don’t think (50% need) (30% want) (20% savings) will apply to everyone. Truly. If you make $2800 a month, rent is $1000 at the very least. Gas/Electricity depending on.. like okay.
For this example, this is a single 22 year old woman making $18.50 at a local grocery store, she rents a 1 bedroom apartment for $1000, water & gas included. She doesn’t have a car note, and we’ll do the full expense breakdown in a moment.
Is this realistic? Lmao.
- 50 percent would be $1200.
- 30 percent would be $720.
- 20 percent would be $480.
She works 40 hours a week, getting paid biweekly. Her monthly take home is about $2400 take a bit more off for them taxes boo. So. After rent. You’re looking at $1400. That’s already 41% of her monthly income. Then she pays her car insurance, we’ll say it’s about $250.
Now, serious question. Is grocery considered a need or want?
So she goes shopping twice a month, spending about $120 each trip.
Okay. She should have at least $910 left. We’ll throw another $120 for gas, spending $30 each trip, let’s say she has a non-guzzler, a Toyota maybe?
$790 remaining.
So far, she’s spent 67% of her income on needs; I get the needs listed are debatable but hey. She’s got to eat and make her money.
Oh damn. I forgot she has an electric bill. $50 tops. Maybe $40 honestly. Okay. $750.
She could very well put that $750 up. Ideally, she can still achieve that (20% savings) by saving $480 of that $750. That leaves her with $270 on what she wants, $400 less than the original (30% want suggested)
Will she do it?
That’s not really the point here. The point is to take a look at our own finances, and really understand what tips on saving, will really work with us, and our currency.
k bye
Robyn
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