BudgetingTips #NewLease #PersonalFinance
Starting Your First Lease? Here’s How to Budget Wisely 💡
Congratulations on starting your new lease! 🎉 Moving out on your own is an exciting milestone, but it comes with financial responsibilities. Let’s dive into how you can budget effectively when you get paid fortnightly and have varying incomes.
Understand Your Earnings
Your income can fluctuate between $1860 and over $2000 before tax every fortnight. Knowing this range is essential.
- Lowest income fortnightly: $1860
- Highest income fortnightly: $2000+
Calculate your monthly income:
- Minimum monthly income: $1860 x 2 = $3720
- Maximum monthly income: $2000 x 2 = $4000+
Calculate Fixed Expenses
Your rent is a significant fixed expense. Let’s break it down:
- Weekly rent: $350
- Monthly rent: $350 x 4 = $1400
Other essential fixed expenses might include:
- Utilities (electricity, water, internet)
- Transportation (car payments, insurance, gas)
- Groceries and essential supplies
Create a list to visualize these fixed costs.
Plan for Variable Expenses
Variable expenses fluctuate and include things like:
- Dining out 🍽️
- Entertainment 🎬
- Shopping 🛍️
Allocate a reasonable amount for these to avoid overspending.
Pick the Right Budgeting Method
Here are a few popular methods to help manage your finances:
50/30/20 Rule
- 50% Needs: Rent, utilities, groceries
- 30% Wants: Dining out, entertainment
- 20% Savings/Debt: Emergency fund, debt repayment
Envelope System
- Use physical or digital envelopes for different categories.
- Stick to the allocated budget for each envelope.
Zero-Based Budget
- Assign every dollar a job.
- Income minus expenses equals zero at the end of each cycle.
Build an Emergency Fund
Protect yourself against unexpected expenses:
- Aim to save 3-6 months of expenses.
- Start small by saving a bit from each paycheck.
Monitor and Adjust
Regularly review your budget:
- Track spending using apps like Mint or YNAB.
- Adjust your budget based on actual spending and income changes.
Use Budgeting Tools 🛠️
Leverage technology for better control:
- Apps: Mint, YNAB, PocketGuard
- Spreadsheets: Google Sheets, Excel templates
Stay Disciplined and Motivated
Budgeting requires discipline. Tips to stay on track:
- Set financial goals 🎯
- Celebrate small wins 🎉
- Keep a positive mindset 😊
You’ve Got This!
Starting on your own can be nerve-wracking but remember, many people have successfully made this transition. By following these budgeting tips, you can manage your finances effectively and enjoy this new chapter in your life.
Good luck on your journey! 🚀
For more personal finance tips, follow [@YourFinanceGuru] on social media! 📲
Got more questions? Drop them below and let the community help you out! 🙌
Stay at home and save the 350 per week.
Failing that, Google free budgeting tool.
Where do you find a 2 bedder for $350?
To actually answer your question;
Use something free like google sheets.
Have a column for each month, starting with June.
Have a row for all of your income. Average it over the year, being conservative. So, put $3900 a month as your (gross) income.
Then have a row for each monthly expense.
Eg;
Rent
Electricity
Mobile plan
Internet
Insurances
Groceries
Streaming services
Spending
Then, importantly, have a row for savings. That should be the amount you earn, minus all of your living expenses.
Then, as the last row, have your ‘at bank’. This is the balance of your savings account.
In June it should be whatever your current savings are, plus your June income, minus your expenses. Then, do a formula for June at bank, + July savings, = at bank for end of July.
Dont pay for budgeting software, its a waste of money
I use this spreadsheet for budgeting. You just enter your income in the settings then go to the budgeting tab and add all your expenses in. It’ll create a nice breakdown of where all your money is going and how much you’re saving.
https://cspersonalfinance.io/
Where do you live?? $350 is so cheap
I use the app Frollo, tracks all my transactions and gives me a monthly In/out overview. Shows how much I’ve saved for the month. I think it’s great, it’s free so don’t expect miracles but it’s fantastic for me.
we do a budget once a year then make sure we monitor all spending. Everything goes through the credit card and once a week we enter everything from that onto an Excel file
You’d be amazed the difference a budget makes when you actually track how you’re going
I have separate bank accounts for rent, bills, car, health, emergency and savings. Auto transfers are set up for the day after I get paid and I pay these accounts first. What is left over is my spending money (food etc) for the fortnight. Helps me to separate money out so there’s no stress when rent comes out, or I have a few big health expenses in a row because I already have the money put aside.
$1860/fn gross works out to $1586 net, or $793/week. First step is using net income for budgeting purposes.
After rent you’ll have $443 to pay for everything else. Try the MoneySmart budget planner to add everything in that’s relevant to you.
Keep in mind rent is usually paid monthly, and mathematically there are 4.3 fortnights per month. So some months you need to get half of each rent payment from each pay, other months you’ll have a third pay period to work with.
I’m also a fan of the Glen James Spending Plan to organise bank accounts and finances. Keeps bills money separate from spending money so you don’t accidentally dip into your “needs”
On the day I get paid, my rent, bills and savings gets immediately deducted into seperate accounts.
All my bills come out of the bills account. I work out how much electricity is over the year, divide by 26, round up, and save that amount. Repeat for all your other bills.
I never have to worry about rent or bills as the money is always there.
PS wish i did this when I was 20.
Finally, whatever money is left is what I have to spend on food, drink, cafe, etc. Stick to jt.
My main advice would be to set up a separate account for your rent. The minute you get paid, put your rent in that account, that way you always have the rent there and available for the real estate to debit. If the rent is paid and you know it’s always available when due it’s one less thing to worry about as you get used to living on your own.
Once you work out your budget you can also use this account to put a little bit aside every fortnight for electricity & gas bills, annual car expenses etc. so you aren’t ever surprised by an unexpected expense.
Google sheets bro.
Date | Expense | Price in $
30-05-2024 | Weekly Rent | $350
01-06-2024 | Groceries| $64
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