HOW TO FOLLOW THE 50,40,10 BUDGETING RULE TO SAVE MONEY

Budgeting is a way to help you track how and what you spend your every penny on, so you can effectively manage your money to save more.

Budgeting is NOT always easy especially if you are not used to it.

If you are unemployed or don't have a steady income coming in monthly, it becomes alot more difficult. 

But that should not be an excuse for not having atleast a piggy bank or setting aside small cash here and there for future purposes or unplanned events.

Because the truth is, there is always going to be "an unplanned events" in life.

Whether you are a student, housewife, worker or completely dependent on someone for your finances, you need to know how to manage money and budgeting is the perfect way to ensure you have something save up for the future.

And for that, I use a simple budgeting technique called the 50, 40, 10 percentage Budgeting rule.

What is the 50,40,10 saving rule?

Its just a simple budgeting calculation by percentages which helps you plan out how you use your money. 

It is 50%, 40% and 10%.

50% goes for Needs: These are the things we CAN'T live without. Things like food, health,shelter, light, gas, etc. It gets the largest percentage.

40 goes for wants: these are things which you can actually stay without. For example, when going to the market, you see a beautiful pair of shoes (I love shoes btw), you might want to it even though you have perfectly good shoes maybe more than you can count. Or you that dress you screen-shotted to sew, or even things like going on expensive trips with friends, etc. Those are things you can do without.  

10% is for savings: The money you set aside to achieve your future financial goals or Even for unforseen circumstances.

Now this is how I save money following the 50,40,10 percent rule.

Now inorder to save money, you need to plan out how u spend money right? That's what I do. Plan out (budgeting).

I use to just save when I Have ENOUGH money and you know the result? CRICKETS! yeah my account usually was empty but with this rule it becomes easier for me.

I pay myself first:

I know the 10 comes last, in the rule however, it is the first thing I do. I PAY MYSELF FIRST. 

This is what I mean by that statement.

Whenever I get my salary or monthly allowance,.or house allowance, the first thing I do is to take out my calculator, subtract 10% of that money and save up usually in a "ngangi house". 

Or in a little iron piggy bank I have hidden somewhere. Take note; not a wooden bank, instead an Iron bank which is hard to open.

For example let's say I get 30,000frs this month. 

I will use my calculator, and subtract 10% of 30000frs and put in my local bank or piggy bank. Which means 3k frs goes to savings.

Savings should be a must no matter what because this money is crucial is times of emergencies or even just building up your personal account.

2) I Budget money for foodstuff for the house with the money assigned.

Ok the other is 50% which is 15000frs goes to buy what I need for the house mostly foodstuff for the house.

This is just a rough calculation of me budgeting 30k during one of those days but you get the point.

3) Budget money for extra.

40% which is 12000frs goes for things like hair, clothes, rubbing oil, soap, etc sometimes even debt. 

It's not usually enough so,

I plan out the money since it's not enough to get all my wants. What I do is to use part of the 12k to get some of my wants in a particular month, save part and carry it over to the next month. 

That's how I do my budgeting.

 

Budgeting should not be something hard to do. Make your own rule the way it best fits you. How much do you reciev daily, weekly or monthly? The main thing is to have control over your money and Budgeting your money gives you that power. 

 

How do you do budgeting for your home?