The average person just has one bank account where he/she manages all his/her wealth in which I personally find to be a very daunting task for two main reasons.
1. You are likely to mix up your home expenses with investments and that is just a headache to manage.
2. You will easily be tempted to spend all your money in the bank account (unless you are very disiplined) and you don’t put investing on your list.
Now, look I know its not impossible to manage both investments and personal expenses together, you could still do it, but why hassle yourself when you could go and do something better?Read More »
Ok, so if you haven’t downloaded the monlthy budgeting plan then you can go and find it in the Business Tools page, but to save you some time here is the download for the Monthly Budgeting Plan.
Now that you have it infront of you lets get started.
- ‘Monthly Net Income’ is the total income you recieve every month.
- ‘Income 1, Income 2…’ are your monthly income streams, you may have more than one and they could be things like your tenants rent, the car park space you’re renting out, maybe income from forex trading and then your 9-5 job. You can amend it accordingly.
- ‘Monthly Net Income Total’ is all your incomes added up together (pretty obvious).
- ‘Monthly Expenses’ are your monthly overheads which you pay every month such as tax, rent, water bills, and others. You can insert as many rows as you need and name them according to your requirments, also note that on row 19 the term “Other” could refer to things that are recreational (which is a variable amount each month) and may not be a fixed amount, I recommend you remove it if you’re really serious about saving money since we want to cut out every expense we can.
- ‘Monthly Expenses Total’ is again similar to number 3 except for your expenses (expenses added together).
- ‘Monthly Saved Money’ is the amount of money you have left (income – expenses) and should be put into your seperate investment account which I will talk about in another post.
- ‘Daily Saved Money Goal’ is the sum of money you are saving on average per day (Monthly Saved Money/30). For example if the ‘daily saved money goal’ turns out to be £5, then that means we are saving £5 each day. Of course you could go ahead and spend £5 a day, but why waste your time doing all of this if you’re going to spend it all?
- ‘Yearly Saved’ is the amount you save per annum (Monthly Saved Money x 12), so if everything goes according to plan, you should have that much money saved in your seperate account.
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