Most budgets are dead by the end of January. They fail because they try to track every coffee, and nobody keeps that up.
Three lines instead of thirty
Split your take-home pay into three groups:
- Needs: rent or bond, transport, groceries, insurance, minimum debt payments.
- Wants: eating out, subscriptions, clothes you do not need yet.
- Future you: savings and extra debt payments.
A common starting point is half for needs, a third for wants and the rest for future you. In practice, needs often take more. That is fine. The point is to see the split, not to hit a perfect number.
Pay future you first
Set a debit order for your savings on the day after payday. What is left is yours to spend without guilt.
Three things to do this week
- Add up last month's needs from your bank statement.
- Pick an amount for future you, even if it is small.
- Set the debit order.