On Budgeting

As a couple, we only have more or less 18-20K combined net income which depends on the incentive he will receive each month to get us by. Although it’s a good thing that he always receives incentive each month, the amount still varies so we need to wait for it before we can actually do the budgeting. With this amount, budgeting is really important for us although we don’t really spend much on house bills and food since we are still living with his mother. The only monthly bills we assumed responsibility of that makes it as our fixed expenses are the electricity bill and 75% of the maid’s salary plus the monthly payment for my credit card, motorcycle (which will end on November), appliance installment(10months to go) and my monthly check-ups including vitamins &medicines(up to September). But there is also the allowance to be included in our monthly budget and other miscellaneous expenses and needs.

For almost 4 months of being married, I keep a record of our monthly budget which usually total to almost 10K but still I can’t keep a track as to where the remaining money goes. We also do keep a little more extra budget for other leisure expenses and a 3 to 5K is automatically put into savings, which must not be touch no matter what. I think I’m not good at budgeting since we still find ourselves short from our budget. Hmmm, this makes me get into thinking of other effective ways to budget. I know in myself that I am not extravagant nor he is. But as they say, money really passes our hands quickly without us knowing where it had gone to.

Anyways, here’s how-to tips I got from WikiHow

How to Budget Your Money

• Calculate your regular income. Include that of your spouse also, as well as regular income from other sources.
• Make a list of all income sources and amounts. Do you receive regular overtime or a large bonus? Is it guaranteed? Can you calculate average amounts by using past bank statements or pay slips? Try to be accurate and get to an average 'net' (after taxes) income.
• Calculate your regular expenses. Save all receipts and expenses for one month. Ideally, you need to carry around a pen and small pad with you for one full month. Write down every amount you spend, what it is for and where you spend it. Much of the spending will be on large, regular items (rent, utility bills and grocery shopping, for example), but there will probably be many small regular items too (newspapers,magazines,coffee shops, snacks, haircuts and entertainment)
• Look at the figures. Money coming in (income) and money going out (expenses). If your expenses are more than income, you need to take action!

TIPS

• Don't rush budgeting.You need a month to figure out exactly where your money is being spent the most.
• If you find your expenses are extremely high, compared to your income, you have to cut back on some unnecessary spending.
• Very few people ever bother to budget, which is why so many people are in debt. Few really realize just how much they spend on worthless expenses.
• Try to categorize your fixed expenses (e.g., those expenses that don't change from month to month, like a mortgage or car payment) and your variable expenses (e.g., those expenses that can go up or down, like your utilities or mobile phone bill that depend on your usage). Since hidden or unmanaged variable expenses can eat away at your income, those might be good candidates for categories to monitor.