Hey are you a fresh-grad who recently joined the workforce? Do you consistently find yourself running out of money at the end of the month? Fret no more, here is a sample of how to manage your finances and tips on how to save money for higher financial stability!
Use the golden rule of 50/30/20 for your budgeting. Half of it for necessities, 30% into personal use and entertainment and 20% into savings.
With that, let’s assume your income is at 2,500.
You have
1,250 for your necessities
750 for your wants and entertainment
500 for savings
First thing you should always do, is to invest that 20% into savings, so you do not spend it and let it grow.
After that you pay off your necessities as you don’t want to have debts, trust me, the more it piles up the harder it is to deal with.
Once you’re done with saving your money and repaying your debt, you are free to spend the remaining for whatever it is you want to do.
Here is an illustration table :
Expenses
Costs
Remaining Funds
Savings
Payday
2,500
Savings
2,000
500
Room Rental
500
1,500
Car Loan
300
1,200
Bills
100
1,100
Insurance
100
1,000
Groceries
250
750
*750 for various other things ranging from entertainment to gas to more groceries.
Notes
With this method of managing your money, you will have some money left over in case of emergencies as well. By sticking to the practice for a few months, not only would you be able to have a decent saving, you would also be used to budgeting based on your income. As your pay rises, you will also have a rough and general idea of where and when to use your money.
