January is tough on all of us. It’s dark, cold, long and no one has any money. Everyone’s avoiding looking at their balance, staying inside and vowing not to spend any money until February. So we can all manage our money a little better, we are taking you through how to use one of our Agenzio budget books.
Soon your books will be as balanced as yin & yang and you’ll actually have something to show for your hard work at the end of the month!
Our first tip for using the book is to use your first page to make a plan. Don’t worry about looking at your incomings/outgoings yet, let’s just prioritize what you spend your money on. At the top of the page, list everything you have to spend money on each month. In this section, we have rent, utilities, Spotify, phone bill, travel. Deduct all of these things from your salary to work out what you have left to work with.
Next, we’ve added in the amount we want to save a month. Even if you are only saving a small amount each month, it’s important to get into this habit. We find it helpful to transfer all of these expenses out into a separate account as soon as you get paid, that way you can never accidentally over-spend and not be able to pay your rent. If you transfer out your savings at the same time, it stops you from spending them without realising.
Once you’ve taken out your essential spend, add in any money that you tend to earn on top of your salary each month. This could be freelance work, selling clothes or income from a property.
Now we can split out the remaining balance into a weekly budget for groceries, cosmetics, clothes and enjoying life! You can order the list by priority to help allocate funds. Once you’ve set the amount you don’t want to exceed for each area per month, you can refer back to it throughout the month to see how on track you are. Try not to allocate all your money, so that if any unexpected costs arise, you can have a bit of cash to cover them.
Now that our budget is set, the rest of the book can be used for tracking your actual spend. Again, transfer your monthly bills out straight away and use the rest to track your spend weekly and daily. Make sure you add to your book daily, this is really important for staying inside your budget. Small costs like a daily coffee can really build up and before you know it you’ll have spent your monthly budget for coffee in one week.
Hopefully these tips will help you stay in the green and keep your money diary daily. Shop this budget planner here.