Budgeting My Monthly Salary
Hi all,
Yesterday I talked about planning my budget (yesterday’s blog) and how it was high time to do that.
So, I have finally planned my monthly budget — inspired by Elizabeth Warren’s amazing 50-30-20 rule.
I wanted to plan the budget for two main reasons:
- To analyze my expenses
- To cut some slack for skill development courses and hobbies
I did some research on budgeting monthly expenses and savings, and I came across various articles.
Most of them talked about Elizabeth Warren’s 50-30-20 rule.
According to the 50-30-20 rule:
- 50% of monthly earnings should be used for essentials
- 30% for hobbies, skill development, or luxury
- 20% for investing and savings
But currently, I don’t need 50% for essentials since I’m living with my parents —
I hardly require 20% for essentials.
Besides that, I need around 24% for my luxuries.
So the rest will go into savings — at least for this month.
For this month, my luxury expenses are more than my essentials, haha.
Luxury expenses include:
- Netflix
- Online courses
- Hobbies
Now I have a clear idea about my expenses and savings.
I’ll start investing my extra savings — doing research on mutual funds and other investment options.
In conclusion:
- 20% of my salary → Essentials
- 24% → Luxuries
- 56% → Savings
That is it for today 🙂
Love Love,
Kiara
Update:
I donate 2% of my monthly salary to a charity.
Giving back is as important as saving! 🙂