Basic Monthly Budgeting

Hello! I’m Mush and I am serving my NS now. I’m starting this blog as a past time and just for my own documentation of what I do with my money. NS very boring lah… hahaha.

So as you can see in the title “Basic Budgeting”, you might wonder what it means or why I’m writing about this. So when I was in poly the past 3 years, I started to do my budgeting and managing my own money. This was due to me wondering where the heck my money all went. So after I started doing a budget (and actually following it LOL… that was the hardest part), I began to see I started “losing” lesser money. And I do notice people my age (21 this year btw) don’t really have a budget. So this post is going to document how I actually started doing my budget.

Step 1: Estimated Income

Purpose – Knowing how much you can spend monthly
This is basically what is available to you for use for that month. For working people, it is what you earned the previous month for you to use this month. For students, it is what allowance you can use, be it from your parents or any bursary/scholarship that you received. As a Poly student, I had a scholarship and bursary and so this was how I estimated how much I could use per month:

Step 2: Categorise Your Spending

Purpose – Knowing what you need to spend on
There are a lot of ways to categorise it but everyone has different categories. So below was my spending categories when I was in Poly:

Step 3: Setting the Amount per Category

Purpose – Knowing what your monthly expenditure is
This varies for different people. But the important thing is to give a reasonable estimated amount that you should be able to use. It shouldn’t be too much or too little. It should however total up to be what you can spend per month, so have some time tweaking it. Here’s mine:

Step 4: Adjusting your Budget

Purpose – Making sure you’re on track
A budget is not something that you will hit every month due to the changes in our monthly spending. But that said, you could always adjust how you use your money after each month so it is as accurate as possible.

So that’s as basic as a budget could be! Sounds easy? Give it a go and you might see your spending your money better. I will try to make subsequent posts on much more complex budgeting methods. But first let me know how it went for you 🙂