Money Talk, How I Budget

I’m stuck between, “I need to save money” and “You only live once”. 

Budgeting can sometimes be overwhelming and boring, it feels like you are depriving yourself of spending your hard-earned money on something that you really like. But being smart about how you spend your money is different from being frugal.

I come from a third world country and most of my fellow Filipino thinks, I am living a good life here in London. They think that just because I live in London I am now very loaded. Filipinos have this wrong mentality when their relatives or friends live and work in other countries. They don’t know that we have to work so hard, get sleepless nights, go to work even if we are ill, don’t eat on time, get depressed and most of us are living alone. The reason why most Filipinos choose to live and work here in London or anywhere in the world is because of their family, to support, provide and give them a better life.

I have been living in London for nearly 8 years now and I have been through a lot. I have moved to quite a lot of houses already. I did some various jobs that paid me decent money to live by. I have been in a relationship that didn’t work and got depressed. However, I’m grateful that I have relatives here who were there for me and very supportive.

But I have learnt so much now especially on how I handle my money. I do have a well-paying job plus I live in a rent-free home, I finally get to save money. Because back in the day, I didn’t know how to manage my finances. I used to save money for something to spend on and get broke after. Now that I’m smarter with money, I prioritize my savings and then bills.

Let’s talk about money. I want to share you guys how I do my monthly budget. I like writing it down so I can see all my savings, bills and expenses clearly. This is just an example of how I do my budgeting, this is not the actual amount and not my actual salary.

 

On the top, shows the Month and the amount of the salary (not my actual salary).

The first box shows my SAVINGS: Direct Debit

• First one is an ISA (Individual Savings Account) is a tax-free way to save or invest. I don’t touch this savings account, I do receive a monthly statement by post to update me on how much I have saved already.
• The second is a personal savings account, I can access this one. Whenever there is an emergency expense, travel/holiday expenses, family expenses, impulse purchases or personal expenses I’m allowed to take some money out. However, I will pay it back the following payday. It’s like I lend money to myself.

The second box is all the BILLS: Direct Debit

• It’s pretty basic, all the bills are taken out via direct debit on my current account. I like listing them and crossing them out when they are deducted from my current account. To remind me and allow me to monitor how much money I got left.

The third box is for my monthly expenses and weekly allowance: money is withdrawn and I keep it in my wallet. In this way, I will limit using my Debit card and to avoid overspending.

 

1. OYSTER CARD- An electronic card, I use for my daily travel/ public transport in London. Travel fare in London is unbelievably expensive. The fare depends on where you live in London (Zones) and time (peak or off-peak). I buy the monthly travel card because I save more than buying pay-as-you-go.

2. MONEY REMITTANCE Yes, I do support and send money to my family in the Philippines.

3. Gas and Electricity- Even though I live in a rent-free home, as part of my share, I pay for the gas and electric.

4. Personal Allowance- I give myself spending money (cash) for a month. I can spend it in any way I want. Sometimes, at the end of the month, I still get some money left which I add up to my next month’s allowance or save it for something I want to buy.

5. Food Allowance- I go food shopping every week and do meal prep. I bring packed-lunch to work and it saves me money. Meal prepping for me is very important because I know what I am eating, I prepared it myself, I can control the portion and I save money as well as time.

6. Holiday/travel Fund- I love travelling, so I have to save up for it. Depending on where I’m going and how long I will be away may vary on how much I need to save.

On the last box in the next photo on the right shows my SALARY LESS THE TOTAL SAVINGS, BILLS AND EXPENSES = MONEY LEFT: If I get or will be expecting some money left in my current account I will add half of this on my TRAVEL FUND and keep the rest in my debit card or I can use it in some emergency expenses. I have to keep my current account in a certain amount so I won’t feel broke at all.

I try my best to stick to my budgeting religiously by creating my Monthly budget planner with strict numbers mainly on savings followed by bills and expenses. And after calculating everything and when I know that I’m going to have extra money left I won’t feel restricted on spending or at least I can train myself not to spend it on not so important stuff.

Living in London is very expensive, so I have to be smart in managing my finances, otherwise, I won’t be able to do, get or buy what I want. However, as I grow older, saving for my future is my main priority and I still get to enjoy my life.

This is my budgeting techniques that is not making me feel restricted to enjoy my life. I hope you have picked up something. Cheers!!! Until my next blog…

Lots of love,

 

Rainne xxx

 

 

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