I know lots do this stuff already but I wanted to share a plan I wrote for a friend a couple of months ago. She wanted to save money. This is exactly how I saved to buy a home by myself in Auckland. My mum taught me this way of organising my money and after 3 years I was able to buy my unit in 2015. Obviously adapt to suit your own needs, for example, I left car expenses off as my friend doesn’t own a car.
And yes, I know “life” can drop a grenade on the best laid plans…but I still think a plan doesn’t do any harm, and I might make the recovery a bit less painful!
She recommended that people have a monthly budget, and divide what they earn into three sections:
1. Working (regular bills)
These are bills you have every month, like water bill or rent.
2. Slush (irregular bills)
You dip into this account “as bills come in”. This can include the dentist, a haircut or travelling.
Finally, this is the money you can conformable save every month. It’ll differ for everyone.