After I receive my paycheck I setup my budget for the upcoming month with my personal budget planner.
The steps I take to setup my budget
1. I list my expenses
I start by reviewing my expenses in July and check if there are any changes for August.
| Expenses | Budgeted |
|---|---|
| Rent | €790,50 |
| Health Insurance | €134,77 |
| Banking Fee | €1,70 |
| Mobile | €18,99 |
| Netflix | €13,99 |
2. Then I list my sinking funds & jars
Sinking funds
In August I will not be using my sinking funds. So I will only add to my accounts.
My sinking funds are short term goals (1 year) that I setup at the beginning of the year. I divide the amount I expect to need and set money aside every month.
| Sinking funds | Budgeted | Total amount |
|---|---|---|
| Birthdays | €50,- | €824,25 |
| Christmas | €18,75 | €314,- |
| Vacation | €120,83 | €377,20 |
| Phone | €50,- | €783,51 |
| Sinterklaas | €4,17 | €65,42 |
| Mother’s/Father’s Day | €6,67 | €104,65 |
Jars
I filled my jars for August.
My jars are used for my variable expenses that I have every month. I try to not exceed this budget.
| Jars | Budgeted | Total amount |
|---|---|---|
| Groceries | €300,- | €300,- |
| Eating out | €100,- | €114,42 |
| Play | €100,- | €175,17 |
| Personal Care | €12,50 | €25,- |
I use the bank, KNAB to keep the accounts seperate and not exceed my budget unknowningly.
3. Check my savings goals
Next to my short term goals (sinking funds) I have some medium and long term savings goals.
- My emergency fund is fully funded
- The fund to cover the costs for buying a home is fully funded
These costs are not covered through a mortgage loan when buying a home - Downpayment for buying a rental home is ongoing