We each have our own style and system of budgetting. I have tried:
a) Putting 20% of my income immediately into savings, 40% to bills, etc.
b) Giving myself an allowance
c) Cost-cutting (bringing my own lunch to work, walking instead of taking cabs, controlling the urge to buy books I don’t really need but am dying to read, etc.)
d) Putting my spare change in a coin bank after each work day
The key word though is “tried.” More often than not, I failed! I would end up being short of cash, having to downgrade on things at an inconvenience, paying the minimum amount due… things that just made be go deeper into the hole I created. After all those attempts at budgetting, I have finally found the system that was effective for me: a worksheet!
I was doubtful that I would succeed with this system because I admittedly have little financial discipline. And so before I tried out the worksheet, I discovered I had to adjust something first: my attitude. I’m the type who, upon seeing a nice pair of shoes would think “Oh I deserve this! I worked so hard this week!” I had that kind of thinking too often and so I ended up with a number of hardly-worn shoes and with not that much savings.
And so, I changed my outlook. I became more focused and more determined to fix my budget. My goal was to save. After I was happy with how resolved I was (no more excuses!!!), I began preparing my worksheet. I entitled it the “Shape up or Ship Out Plan.” Here’s a sample of the worksheet with sample figures, and how I put it together:
| Expenses and Savings | Where to | Oct 10 | Status | Oct 20 | Status | Nov 10 | Status | Nov 20 | Status |
| Electric bill (Due: Every 6th) | Env | 200 | D | 200 | 200 | 200 | |||
| Laundry (Due: Sunday) | Env | 1000 | DP | 1000 | 1000 | 1000 | |||
| Groceries | Env | 2000 | DP | 2000 | 2000 | 2000 | |||
| Tuition fee (Due: Every 29th) | Checking Acc | 2000 | D | 2000 | 2000 | 2000 | |||
| Allowance | Env | 400 | DP | 400 | 400 | 400 | |||
| Personal savings | Savings Acc | 500 | DP | 500 | 500 | 500 | |||
| Vacation | Savings Acc | 1000 | DP | 1000 | 1000 | 1000 | |||
| Total | 7100 | 7100 | 7100 | 7100 |
1. Set up your expense list. Some examples of my monthly expenses include laundry, the electric bill, cell phone bill, the cable bill, the credit card bill… Write down all those bills that you have to pay. Face the music.
2. Treat your savings like an expense. This thinking worked for me a lot. I do not put my savings in my wallet anymore. I deposit it right away along with my budget for the other expenses. That way, my savings budget goes untouched. This is where change in attitude counts a lot too. Instead of saying, “Ah, that P500 can just go to my wallet! Anyway, it’s myself I’m saving for anyway so might as well treat myself now…”, treat it immediately as a debt to yourself. I hope I’m not confusing you! Again, let us be reminded of our goal. To save money. To be liquid. Indulgences are a different story.
3. Set up your deposit dates. If your salary arrives twice a month, you can set it up the way I did above. You can also set it up on a weekly basis if your income flows your way every week.
4. Calculate how much you’ll budget for each item. How much do you usually spend on each item? How much is the maximum you should be spending on that item? In the above table, I put a sample P1000 per date for Laundry as I spend P500/wk on laundry. Do the same for your other expenses. Look at your old receipts and statements and see how much your average spending was. Then put a realistic ceiling to that amount. Our goal is to save remember?
5. Indicate what account you’re depositing your budget into. If you want to be even more organized, I suggest you do this. For expenses that require immediate payment in cash, I have an envelope. In essence it is like a petty cash box. When laundry day comes, I just dip into the envelope to get my P500 budget. If you pay your items by cheque, deposit your budget into your checking account. And so on and so forth.
6. Total your expenses per date. This is the amount of money you have to put aside RIGHT AWAY. For example, your given salary is P7,500 per pay date. Put P7,100 into your envelope/checking account/savings account immediately!!! The balance can be your additional allowance. If you want, you can opt to deposit it into your savings. If I have extra, I use it for indulgences like eating at a really good restaurant, buying a good book, etc. I don’t have to worry about saving it anymore because I already have deposited my budgeted savings for that cycle!
7. Update your sheet so you know what items you’ve paid off. I use the legends “D” and “P” for my worksheet. D is for items I’ve deposited into the envelope and the bank. P is for items I’ve already paid off. So if it’s a DP, cool! If it’s a D, it means I have yet to wait for the statement or bill to come. At least I’ve set aside money for it already. And of course, I put DP also for my personal savings because I’m paying myself!
After many years, I have overcome my fear of and disdain towards budgeting. Before one can be successful at it, one really needs to have an attitude check! It requires a lot of discipline. It is difficult in the beginning, but as you get into the groove of it , you will feel the difference. You’re less panicky, more assured and more secure.
This system worked for me. I’m more comfortable with budgeting now and am not losing sleep wondering where my money went. This system can either appeal to you or turn you off! I’m a little bit OC (obsessive compulsive) when it comes to worksheets, hence the many details of this one. Do feel free to experiment with forms that will suit your budgeting style.
Times are hard and we all need to save! Whatever style you have, I hope that it is working for you and not causing you to toss and turn at night. Money isn’t everything, but it sure does help ease a lot of everyday troubles. Good luck with your budgetting!
If you’d like to learn more about budgetting and preparing a worksheet, visit the following sites:
What Maria Bartiromo told Oprah about the 3 best ways to save money
Basic Budget Worksheet for Setting Up Your Personal Budget
Dollar Saves
Images from stock.xchng
Hi! I'm Toni Tiu,
and I've been blogging at
at Wifely Steps since 2003. This started as a blog to help newly weds adjust to married life. It has evolved into a home and parenting blog. I write about things close to my heart -- good eats, good reads, family, marriage, and the little things that make everyday happy.
rach
January 9, 2007 at 1:51 am (17 years ago)Budget … I know what it means, how to spell it but I don’t seem to know how to implement it. haha! Sadly, mas malaki parati gastos ko sa savings ko. Minsan wala pa nga. Tsk! Tsk! Shame on me. I often feel that I’m an irresponsible mom because I don’t save much for the future. Oh well, there’s still hope. Thanks for this useful budgeting tips. I’ll give it a try and hopefully the start of the year will be good for me.
kat
January 9, 2007 at 5:45 am (17 years ago)this is a great way to budget. i don’t have a system as of yet, do this is definitely a good tip for me. i pay my bills online as well so that the money goes directly to where it belongs. budgeting is definitely hard and one of my goals this year is to save, save, save!
p.s. those olives from the previous post are super-cute!!!
pinayhekmi
January 9, 2007 at 7:55 am (17 years ago)Toni, you should see my worksheet! It’s the only financial thing I’ve stuck with. 3 years now and it still works. My advice for anyone just starting out is to set aside a month or two to write down everything that you spend your money on. You can then identify where your biggest pitfall is, as well as see where you can cut down, and exactly how much to anticipate for each expense.
Good luck Toni!
abby
January 9, 2007 at 10:56 am (17 years ago)this is perhaps one of the things i’m good at: budgeting. i don’t want to be at a point that when it’s time to pay rent i’d only cover half of it because i spent it frivolously, or at least not have a penny saved because you never can tell when you’d need it most. budgeting really is a great starting point, otherwise you won’t notice that you’re throwing money out the window.
i’m also OC when it comes to this, my check book’s transactions are highlighted as soon as it’s reconciled. grabe! 😀
miss b
January 9, 2007 at 11:49 am (17 years ago)i’ve always gone with the flow, living a life not restrained by money – maybe it’s beyond my means sometimes but i never ever wanted to feel as if i can’t do anything because i have no money.
so the problem is, i refuse to look at my accounts.. and therefore not knowing what’s going on.
i had a wake up call last month, when i realised after starting my own business that i have earned as much as i was working for someone in less than 9 months of working.. then i thought.. WHAT THE?! I AM CAPABLE of earning more.. BUT.. WHERE DOES THE MONEY GO?
so.. i have looked at budgeting, spreadsheets.. and to tell you the truth, this will be the first month that i will try to actually follow it.
wish me luck.. and thank you for sharing the links!
–miss b
rowie
January 9, 2007 at 12:39 pm (17 years ago)Haha, I’m not OC about a lot of things but ever since I was a kid I’ve always been suuuuuuper OC with budgeting and money matters! 😛 In fact I used to log every single expense into Cashbox (a freeware software I use on my Mac); now I’m more forgiving of myself and just log estimated expenses.
Some helpful saving tips:
(1) At the bank, I separate my payroll account and my bank account for savings. I’m enrolled in BPI Express Online, so I just program my account to automatically transfer my savings for the month to my account for savings. And whenever I get a big windfall of money (13th month pay, overload pay [which we get and we teach an extra class] or extra money from racket] I automatically put all of that in my account for savings as well, so that I don’t end up spending it.
(2) After working out our budget for 2007, Mike and I defined the limit that each of us could spend on “luxuries”–things that weren’t in the monthly budget–per month. “Luxuries” includes eating out at restaurants, buying gadgets, or buying clothes. We don’t follow it strictly but it keep in mind, for example, that “Oh, I’ve already spent P1000 on restaurants this month. I don’t have enough for that pair of shoes. Those shoes will just have to wait until next month.”
JO
January 9, 2007 at 2:23 pm (17 years ago)i’m fairly good at budgeting. i also have a worksheet for all our expenses. i am able to pay all debts/bills on time. but sadly, due to single income, we don’t have any savings. monthly income is just enough for our monthly expenses.
i like #2 – treat your savings like an expense. thanks for this advice. i have never thought of it at that way. now, i will add this to my worksheet and hopefully be able to put money aside.
Tina
January 9, 2007 at 2:34 pm (17 years ago)Aha! I am looking for something exactly like this!
I’ve been trying to find ways on how to keep account of my expenses for this year since it’s time for me to be responsible of the money I earn. Thanks, Ate Toni! 
karina
January 9, 2007 at 4:39 pm (17 years ago)thanks for posting something like this. i learn a lot. now when my first pay for Jan 2007 arrives, I know what to do. 😉
Kerygma Magazine Jan 2007 issue also talks about budget and savings. 😉
happy new year!
hanagirl
January 10, 2007 at 9:55 pm (17 years ago)Great idea! Good lick with this Toni. I actually do some of the those things that you mentioned =)
Jing
January 10, 2007 at 11:56 pm (17 years ago)sounds reasonble indeed. but the thought of me doing it myself gives me shivers(tabulating thing in a work sheet). I am good at budgetting but only the money in my hands, the rest i can leave it to sleep in bank accounts that unless needed, i wouldnt touch it… but i wouldnt know how much i save and spent.
hmmm, maybe i can just give it a try, if it works for you, it should be for me
happy new year dear Toni.
Karol
January 11, 2007 at 3:52 pm (17 years ago)we’re alike! i also have a worksheet for my budget. medyo mas detailed pa kasi i compute up to the last centavo talaga. OC talaga ako. =D another tip i learned is to write down all the my expenses at the end of the day so i could keep track of unnecessary expenses. kinda tiresome sa start, pero once you get the hang of it, tuloy2x na. i also alot a certain portion for emergencies, which i never touch, unless there is really an absolute emergency. luckily, hindi ko parin sya nagagalaw. anyway, will check the links din for more tips…ang saya2x!! hehe
Linnor
January 11, 2007 at 4:30 pm (17 years ago)Perfect way to start 2007. 😀
Goodluck to all of us!
watson
January 11, 2007 at 6:52 pm (17 years ago)Budgetting… something I will never be good at. So what I do is I give my salary to my wife and get my allowance. Kapag nabitin, I ask my wife for a couple hundred more to tide me buy. Really tight allowance budget so I don’t spend extravagantly.
tanya
January 12, 2007 at 2:05 am (17 years ago)wow miss budgeter! hehehe!
know what works too? to be blessed with more money?
tithing!
hehehehe!
trust me.. it works! 😀
Leah
January 12, 2007 at 3:43 am (17 years ago)Hi Toni,
I’ve done this for a year or 2 but have not updated in a while. I guess I should revisit.
Thanks for the reminder and the tips too!
smarie
January 12, 2007 at 4:21 pm (17 years ago)Halo Toni, thanks for sharing your tips. As Linnor says, a great way to start the year 😀 got to save for the rainy days/future
Aggie
January 13, 2007 at 11:06 am (17 years ago)Toni, I linked your entry with mine. Thanks so much for such a great helpful post
sachiko
January 13, 2007 at 6:27 pm (17 years ago)wow,not just a pretty face but pretty smart too! ok,go and visit me here when you have enough moolah saved!
marie
January 13, 2007 at 11:57 pm (17 years ago)That has been my New Year’s resolution every year, budgeting and checking out my finances but waaaahhh… ang hirap but i’ll try that.
vina
January 16, 2007 at 4:05 pm (17 years ago)ha! budget smudget.
hazel
January 20, 2007 at 10:53 am (17 years ago)this is very similar to my budgeting spreadsheet – just diferrent format.
I guess having a mom for an accountant and the drive to really move out of our house when i first had a job helped. Ever since i started working i’ve done this and so far until now that I’m married and have a toddler… we’re doing really great
next goal is to move out. that’s already proving to be VERY challenging!
wish you luck with your budgeting