Equate money with energy and then we are talking about conserving energy when we are working out a budget. It’s putting money into its rightful slots, so that your energy is being expended wisely and you are not wasting energy worrying about how to pay for things. You only buy what you can afford. It’s the one area of your life that you need to mentally categorise to enable creativity and energy to flow effortlessly.
My budgeting philosophy is about creating a sensation of wealth and gratitude while saving up to cover the costs of your adventures. Attitude is important when it comes to law of abundance and the Universe is always listening. Of course, budgeting requires some practical application of skills which just require some basic maths. It’s hard to believe that some people go through life without ever being taught these skills. I hope this is helpful.
When you divide up your yearly costs into monthly and weekly needs, you are able to create a buffer that is able to pay for an unexpected rise in one or two areas of your costs, by rounding it up, not down. You’re estimating the overall yearly costs and then allowing yourself some play money. It is wise to work out how much play money/travel money that you want/need and then work out what else you can afford in the way of day to day living expenses. Please see my budgeting tool at the bottom of the page.
If you go into debt, your energy is out of balance. Sometimes it is necessary for large items such as a car or a house, but please never, never, never go on holiday or travel on credit. This creates an unnatural situation with your energies and it is hard to pay back and restricts your choices for the future. Hopefully, you have read this before you go into debt and stay out of it. If you are already in debt, there is a need to set the balance straight and you need to do this and not go further into debt. This takes a lot of will power and you will need to be strong while you go without some of your creature comforts. I highly recommend that you seek expert advice for getting your money matters sorted, but you will find that it will take a strong will and for this you may require some coaching. I am available to help you with this.
Use a spread sheet application that allows you to put in formulas. They will be extremely simple so don’t worry. You will need to recognise one cell as being your weekly/fortnightly or monthly income. Then you will brainstorm for all the costs you have in your life – rent, power, car expenses, clothing, gifts, work expenses, insurances, phone bills, any repayments required, etc. You will work out a yearly cost for each of these and then divide it by the times a year that it becomes due. Then you will work out how much you need to put away each pay day for each of these items. You will round up, rather than down to ensure you have enough available. If this is taking more than your income, then you need to get another job. Simple as that or you need to cut your costs and live more frugally. Hopefully, you will be left with lots left over and you will be able to allocate money for spending on travel.
My preferred method is to work it out in the opposite way by working out how much money I need to do something and then work out how cheaply I have to live to enable myself to do this.
Another way is to put a percentage in each of the areas that you need to accommodate so you are able to see what you can afford in different areas. E.g. 30% of wage for accommodation, 10% on food, 10% on insurances, 10% on gifts, outings and clothing, 10% on car and expenses, 5% on communication etc. That leaves 25% to save for travel. If travel is more important to you, then lessen the other areas. Find cheaper insurances, phone deals, a less expensive car – or catch a bus, save on gifts, outings and clothing and find a cheaper place to live. The choices are yours. Make it happen. Live within your means – not beyond them.