Quote: (09-05-2013 12:03 PM)frenchie Wrote:
Now the remaining amount is your disposable income. You need to decide how much of this you want to save. You can blow it all or place some of or all of it into an account. This is up to you.
Great advice, Frenchie.
I take this further, and run four linked bank accounts. Any money earnt going into the first savings account. I'm usually paid fortnightly, and, the night I get paid, I jump onto my online banking and instantly start shuffling money around.
I have budgeted my expenses down to a weekly level. I've worked out how much it costs per week for what I consider 'necessary' expenses like mortgage, gym and pool membership, bike and car registration, vehicle upkeep, internet, health cover etc. I also have analysed my electricity, gas and phone bills, and so have an average idea of what to expect per time of year.
The money this adds up to on a weekly basis is what it costs to simply
tread water in society. Looking back at my first account,
I can see what chunk of it is already spent simply by sitting still. So when I get paid, I transfer the necessary chunk, +$30 extra per week into my Bill Account, and don't touch it except for payments.
I also have an 'untouchable' savings account, that I transfer a chunk into each fortnight. That's money for hobbies, goals, travel, pursuits or emergencies.
There's a VISA Credit Card I use now and again, but I never put any second large expense on it until I pay the first one off completely. I always pay as much as I can bear to get the balance back down to zero as quickly as possible.
What is left in the first account after all this is actual spending money. I know exactly what money can be used without getting myself into financial stress. I've found this easily lets you identify frivolous expenses beyond your budget.
It mightn't sound like much, but it really doesn't cost much to be a single man in society. Something as simple as making and taking a lunch and piece of fruit to work each day puts me at least $100 per week ahead of the stupid women in the building spending $10-15 on their lunches and $5 or more on their morning tea and coffee daily.
I've been doing this since I left home at 17, when it was much more complicated to physically access my accounts. I've never once missed a payment or haven't had money when I needed it.
