Budget and Savings
Posted by: ae_00
30th Aug 2023 11:34pm
How do you budget your income? And what are the best ways to get savings?
When I was younger, it was easier for me to commit to my allocated budgets. For example, 20% automatically goes to savings, 40% for spending, so on and so forth.
With the inflation, and life demands lately, I am struggling to budget my money and accumulate savings. I am still ‘pretty young’ and just approaching 30s but I feel like I should have more savings than I currently do.
When I was younger, it was easier for me to commit to my allocated budgets. For example, 20% automatically goes to savings, 40% for spending, so on and so forth.
With the inflation, and life demands lately, I am struggling to budget my money and accumulate savings. I am still ‘pretty young’ and just approaching 30s but I feel like I should have more savings than I currently do.
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Comments 2
antibreeder1m
I never really "budget" in the way that you describe, but I still have plenty to save each fortnight. Here's what I do:
1. I refuse to accumulate anything that will be a liability. This includes dependants (children, animal companions), non-essential purchases (luxury goods, motor vehicle, etc). There are plenty of other reasons against having offspring and you can read more at dontprocreate.org .
2. I only spend where I absolutely need. Most of it is dining-out vegan food that I can easily afford. I live in a small studio apartment alone and do not have others to think about with my money. I spend a few dollars every month on public transport; in some places it will be more expensive, but still far better for you and cheaper than owning a cumbersome motor vehicle.
The secret to having enough is to spend as little as possible (that is, be "minimalist") and save to invest as much as possible. If your rent is super expensive, for example, you may have to consider other options such as living with your parents again, seeking support from friends, possibly living in a car (I've never done this, so I dont know), or just staying in hostel dormitories.
I think having a reasonable job can be important and that's something I would spend time really considering. It depends on your skills, talents, interests, and ethics. I'm available to provide further assistance if you want it!
jtmorri
Always still pay yourself first, so a deposit to a savings account you don't touch, which is best to be a high interest savings account. Reduce your income and therefore your tax by contributing to your superannuation or setting up a salary sacrifice. I know many young people this year had to pay tax to the ATO as the low and middle income earner offset was removed. Managed funds and shares can see tax money returned to you at the end of the financial year as the companies have already paid tax on the earnings. Review your subscriptions and memberships and stop anything you really don't need. Don't order in or eat out all the time. If you don't have the money available then don't buy an item and save to buy it over a couple of pays.