Having a monthly budget for your finances is always a good idea, even when you’re making more than enough money, that way if money ever does get tight, you already have lots of practice. Budgeting also prevents frivolous spending and promotes saving (because do you really need every episode of Futurama on DVD??).

50/30/20

50/30/20 is a easy budget to start with, that you can tweak to fit your own needs. This budget is a popular model for many people, and you can find tons of information about it all over the internet, but let me give you a quick rundown. 50 percent of your after-tax pay should go to NEEDS like rent/mortgage and groceries, 30 percent of your pay should go to wants, like clothing or going out to dinner, and the last 20 percent goes directly to savings.

It’s better to budget in percentages rather than amounts, especially if you don’t make a steady amount every month (in the case of freelancers). Also, notice the big percentage that goes to wants. That’s right, don’t deprive yourself. You can save more money if you feel like it, but it’s good to have a little wiggle room.

Budgeting is not a long, arduous process. It really only takes a few minutes, and it will feel good to know that you’re putting money aside in case of emergency. If you do need to make a big purchase, sleep on it for a little. If possible, come back to it a month later and ask yourself if you still need that item.

There are more posts about financial stuff coming in the near future. It’s something I’m still learning about, but we can learn together!