Wednesday, 7 August 2013

Through Gerwyn's Eyes #16 - Budget & Expenses .

Through Gerwyn's Eyes #16
Budget & Expenses .
Lately , I've been telling some of my close friends ( be it personal / blogshop friends ) that I'm trying to save up $1000 . However , I didn't really say why . Thus , I'll be sharing the reason here ; as well as some things about budget and expenses ! This post may get a little long .
So , why save up $1000 ?
These days , I've been discussing with my boyfriend regarding our future together ; it may seem foolish and all , but we've decided that we would get married someday after I graduate from polytechnic . Thus , we have been starting to save up for our future ; I mean , you'll need money for everything ! From the wedding to the place we'd stay in , and even from a home to a baby ; money is everything .
Ever since we had this conversation ( this started in May , but action has only been taken since July ; it shows how lazy we are XD ) , my boyfriend has an account set up specially to save up for our future . This account , will hold all the money we can save up for the future ; therefore , no withdrawals are allowed >< And till now , he already contributed $2000 into the account . Seeing him contribute that much , I feel like I should do my part as well ; I mean , any relationship is a two-person thing ~ Thus , I aim to save $1000 by the end of this year to be deposited into this special account .
In short , saving up $1000 is to save for the future .
$1000 is not a small amount , how do you save that amount in .. 4 months ?
Technically , August to December consists of 4 months . $1000 may seem impossible ; however , I came up with this plan .. and I shall share it here . Do note that in the following equations , all amounts have been rounded to the nearest dollar .
Target : $1000
Current amount in bank : $108
Current cash amount : $15
Pending amount to be collected from customers : $57
Amount left to save : $820
Daily allowance : $12 ( I end school at 6pm everyday )
Budget for food everyday : $2 ( I bring my own biscuits / snack to school for recess , and buy rice from the canteen for lunch )
Amount saved everyday : $10
Days needed to save $820 : $820 / $10 = 82 days
Estimated day to save up $1000 : 29th October 2013
You can use similar equations to find out how long you need to save up your desired amount !
Once I reach my target , does it mean I can stop saving ?
NO . After reaching your target , you would feel really happy with yourself that you managed to save that much . However , if you're saving up for something , wouldn't the money be gone after you buy something ? Thus , you can start saving up for something else ; or just to save some money ( at a smaller scale ) just for a rainy day .
In my case , after I save the $1000 ; I'll withdraw it out of my bank and deposit it into my shared account with boyfriend . However , that would mean I'm left with $0 in my own . Therefore , I would like to save another $100 in my bank ; which I wouldn't touch . In other words , my bank will have nothing lesser than $100  . I'm rather interested in helping others whenever I can , thus ; I'll be saving roughly $50 to donate to some voluntary welfare organisations . This then totals up to $150 more to save , but it doesn't stop there .
$1000 will never be enough for the future . With the rising cost of EVERYTHING , it's better to save up even more than to just save $1000 . Thus , I'll continue saving up another $1000 and so on .
Persevering to save up can be difficult at times . How do I make sure I stick to my plans ?
Firstly , make realistic plans . If you have other commitments such as taking public transport , eating out , meals to cook , bils etc ; make sure you take them into consideration before you set your target . Also , make sure your daily allowance / monthly income is taken into account . Don't set a goal that high up , so that you're able to reach it . Also make sure that you HAVE ENOUGH TO EAT , don't starve yourself .
Secondly , if you're the type that spends on random things to indulge sometimes ( like me ) ; you can set aside some money to spend in a week / month . DO NOT indulge everyday , it will do no good to your plans to save .
Thirdly , you can set a budget . For example , how much to spend on food / travel / misc. and how much to save every week . This way , you can ensure you save while you spend .
Lastly , try eating healthier . Eating in coffeeshops / whipping up a meal at home will cost lesser than fast food . Fruit juices would cost lesser than Starbucks / Coffeebean .
How can I manage my expenses ?
If you're going to save up and plan for the future , you can get a Cash Book / notebook to record your expenses and savings . However , do make sure you record EVERYTHING down !
If you fail to plan , you're planning to fail .

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