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Budgeting for beginners

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From me for you: My Budget Planner 2017

 You certainly hear very often that you have to be able to budget properly to get and keep your household financially healthy. But what is budgeting now? How do you do that, budget?

For beginners, it can be very difficult to start, but above all to keep going.
The tips below for budgeting for beginners can already remove a lot of ambiguity and make it a functional part of your daily life.Making a budget and keeping it there does not have to be what you have to look up to, on the contrary. It should make your life a lot easier.Although there is no perfect way to create a budget, I share a few crazy tips here to make it easy for you (as a beginner) to set up a budget plan that works best for you.The trick is to fit your budget into your lifestyle. Do not try to fit your life into someone else’s.

Budget Binder 2018

Budget Binder 2018

Learn how income and expenses work for you

It is easy for some to say that a budget is a very simple list of income and expenses, but every family is different and you have to learn what works for you.

To begin using a budget, you first need to do a few simple things to see where changes in your finances would be desirable.

To help you start, you can apply for my free Budget Planner 2017 and print it out. There are eight sheets, but pages 2, 5, 6, 7 will have to print multiple copies.

The importance of lists

Make a list of all monthly income. Salary, allowance, alimony, costs, surcharges, everything that comes back every month as a source of income.

Even payments from people with whom you share a subscription to your name, for example.

Make a list of all necessary monthly expenses. This list contains the basic expenses that come back every month. Things like rent/mortgage, energy, communication, insurance, loans, (student) debts, sports club, groceries, transport, fixed savings, medical costs, taxes. These expenses can not remain unpaid without unpleasant consequences. Yes, you read that right: savings is a must to stay out of debt.

Make a list of all expenses that you regularly have. Things like eating out, organizing dinner parties, birthdays, concerts, entertainment, new shoes on sale or just getting loose on Wish/Ali Express (so nice!) And more things that you do regularly when you are tired of it.

When you look at these lists, you are more easily able to see where the bulk of your income is going and how much of you actually spend on things that you do not really think about.

There are things that are a necessity for the 1 and for the other pure luxury.

Again, think about your needs in your life.

Expenditure Overview

Make a real expenditure overview (also included in the Budget Planner 2018).
Budgeting involves being honest and real about your expense pattern. It has been indicated before, but the focus must really be on the things you absolutely have to pay every month. Also, indicate to yourself a specific amount where you can do other things if your budget allows. Writing down all expenses helps you to see how all categories fit into your budget.

Housing costs includes: Rent/mortgage, repairs, taxes.

Transport costs include: Car payment, insurance, fuel, repairs, APK, OV subscriptions,

bicycle parts that have to be replaced.

Energy includes: Water, gas, electricity

Health insurance includes: insurance, excess, over the counter medication that you regularly buy.

Debts includes: student loans, credit cards, loans (including those from friends and family), revolving credit, payments of received goods.

Household includes: Groceries, care products, domestic help, animals.

Communication includes: Mobile, landline, internet, and television

Entertainment includes: Subscriptions to magazines, games, Netflix etc., date-night, outings, girlfriends evening, bios, theater etc.

Wardrobe includes: Uniforms, replacement of clothes, shoes, legwear, jackets, gloves, party clothing.

Childcare includes: Babysitter, daycare, au-pair, out-of-school care.

Savings includes: Emergency, holiday, pension.

Other: Treats, spontaneous shopping spree, hairdresser etc.

We like to read your thoughts, experiences or questions below.

Make it a great day!

~ Emmy

This post may contain affiliate links. Please read my disclosure for more info.

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