The simplest budget ever

I know there are a lot of budgeting apps, books, methods available on the market but I am here to tell you that you do not really need those. You can do it by dividing your paycheck into percentages. It is like following a budget but in reality, it is more freeing than some budgets.

Every month I create an EXCEL spreadsheet that separates my income, my debt repayment, rent, metro pass, saving, and spending. I lump all of my spending into one category, that includes my food, groceries, everything. For the more variable types of bills – phone, metro, etc. They get their own category since those costs fluctuate. After the month, if I have anything left over, it will be added into my savings. However, I prioritize my savings at the beginning of the paycheck, anything added later is just extra. I save approximately 35% each month.

This how an average paycheck is divided. The phone is its own category because it can change from month to month.

As you can see it is simple. Once allocated the amount of money needed for spending, I just spend that amount. This prevents spillage into the other categories since it is only one number.

However, before any of this can be done. You need to calculate and track your spending. Which is an eye-opening experience. Starting to track for the upcoming month is a great start.

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