My budget allocation 💸

So many people are so surprised when they first learn that I keep expense and income records. Though I think it’s a basic skill for each person. I was quite early interested in money issue because I like having everything under my control and feeling more or less safe this way.

Since 2018 I’ve been keeping my expense and income records. It helped me to save up money for initial payment of mortgage and financial cushion (which earns money itself, being in deposit). 

So what are the steps of successful budget allocation?

1️⃣You should take all the money that you’ve got from salary.

2️⃣Then, you should decide what expenses you usually have. It can be 

a) mortgage payment, 

b) products, 

C) utility bills, 

D) hairdresser, 

E) mobile communications bills, 

F) insurance, 

G) property tax, 

H) vacation. 

I) Investing or financial cushion 

If you have big expenses and you expect them in a year or several months, so it’s better to divide this huge sum of money by small sums of them. For example, you have to pay 20 000 rubles insurance once a year. So divide it by 12, and you should save 1667 rubles every month. It’s easier to save 1667 rubles  than to find 20k during one month.

3️⃣You divide your salary between these groups of expenses and send it (if you have online bank), to particular bank account. Thus, you have defined sum of money for each category of expenses. You won’t have any problems with money if you need to pay the bills or buy products because you always have parties sum of them on your bank account. 

Do you follow the rule of budget allocation?🤔