Money Saving Man was reading the introduction to a book today that really piqued his interest. It was on the question of personal finance and how to handle money. One of the key ways to save money is actually down to how you handle your money in the first place, so being a blog dedicated to ways to save money, we had to weigh-in with something.
This is a basic plan that will help you with your monthly finances, based upon receiving a monthly salary. It is just a skeleton and needs to be fleshed out with your own personal preferences and circumstance, but is a useful guide for all those wishing to take control of their personal finances.
Budget Structure
This is made up of your income, expenditure and savings. An obvious rule is that expenditure and savings cannot equal more than your income.
1. Income
This is the money you received from an employer, customer/s or any other income on a monthly basis. This can only be considered after tax and minus any other automatic deductions for a pension or loan repayments to your employer etc.
2. Expenditure
This is what you spend from your income each month. It is made up of bills, repayments, spending money, food etc. Most importantly it includes the buffer!
3. Savings
This is what you put away each month
First note down how much your income in total is
