1. Taxes, how much you’ll have to pay
In some countries taxes are deductible before you get your income and in others you’ll have to pay it yourself. How much you’ll pay will depend on your situation.
2. Make a list of your monthly obligations
Figure out how much you’ll spend on rent, bills, monthly subscriptions, etc.
3. Make a list of your monthly needs
Write down every single need that you have every month. For example: your hygiene items, household products, food, medicine you might need, etc.
4. Budget your income
4.1 Start by subtracting your taxes and your monthly obligations to your income. Then split that amount by 2. One half will go to savings and the other will be the amount you’ll use for the month.
4.2 Now that you know exactly how much you can spend during the month, you can start budgeting. 15% of that amount will be your “fun money”. You get to use it for things that aren’t a necessity but will bring you happiness! For example, use it for going to the cinema, buy that makeup that you wanted, etc.
The rest, the remaining 85%, will cover the list you made prior: your necessities.
Tip: try to be under budget on the last segment, you’ll get to use the money for savings or for other fun moments.
Thank you for reading this and I’ll see you in my next post.