My personal finance is finally in check and it has become possible to save and have overview. I’ve constantly lived paycheck to paycheck with no savings.
My bills are paid automatically so those are not considered here. This is only about spending and overview.
Here is how I changed it, and it works.
- Pulled out account records for a year. Colored categories, like every spending on clothes purple, food in green, pets in orange etc.
- Added the sums for each category and divided by 12 to see average per month.
- Called the bank and made about 12 sub-accounts. Named each of them a category.
- Set up automatic transfer from my salary account to each sub account for the amount of average spending per month.
- Checked how much was left and possible to save. Transfer it to saving account and buffer account. So far it has exceeded my expectations even in rough months. I’ve not felt pinched at all.
That’s it. Having overview of how much it’s possible to spend instead of a lump sum in the salary account has helped me a lot. I’m sure a lot of people have this figured out but I hope this can help a few people like it did for me.
Submitted February 14, 2023 at 04:34AM by Wreough https://ift.tt/mOEGwW2
