How to budget so you can save & invest more at the end of the day.

Check with your bank how you can open a sub account

• many of them offer these which do not require

  • maintenance of certain amount

  • monthly fees

  • etc

(Objective):

• this sub account is for your long-term savings, ie:

  • Investment funds

  • Emergency funds

For more about this:

• Read:

  • Investopedia - Pay yourself first concept

  • Rich Dad, Poor Dad- Robert Kiyosaki

It is a game changer.

Click here for the budgeting tool

First, list out the:

• first & last day of the month on Column L

  • for example: if its the month of August:

    • put 1/Aug/2022 on cell L5

    • and 31/Aug/2022 on cell L7
       

Next, List out your monthly expenditures items on Column D,
 into the 2 segments of:
 

• i) Fixed monthly one-off expenses

  • Rental/ Mortgage

  • Phone bill

  • Gym membership

  • Subscriptions (Netflix, Spotify etc)

  • add others where you see fit
     

• ii) Expenses which are incurred on daily basis

  • Daily meals:

    • Breakfast, Lunch, Dinner

    • Groceries

  • Transportation

  • Entertainment

  • General expenses, etc

  • add others where you see fit
     

and their respective expenses (in $) in Column E.

exp: after paying your monthly rental of $1000,
 list it out on cell G6,
 

Track your daily expenses on Column G
 

For exp: if you spent:

• $5 for breakfast

  • (you would have $2 extra saved at the end of the day)

• $7 for lunch

• $10 for dinner

  • (you would have spent more than $3 of your allocated budget)
     

Column H will show you the available balance left for the day,
 so it will serve as a reminder to not overspend.

Although it ($2 saved per day) may seem insignificant,

• it can add up to extra $60 (or more- for exp) in a month

• invested & compounded,

  • this small amount can make a HUGE difference over the long run.

    • Refer to:

      • Benefits of fractional shares investing - basically allows you to invest as little as $1

      • & the returns you get when buying stocks that has fallen from their all-time high prices.
         

• It is a great habit that has worked well for me.