I just want to update a few things on my budgeting in 2020 for you. I hope it will be a nice guideline and going to help you a bit. Usually I am writing about hauls, spending; make up, fashion and skincare. Yeah in a way I love to shop, but in 2020 I decided to buy less things , I cannot say it is a totally no buy year, because I know I have to update my closet in quality and we need still need some furniture to our flat.
I was always in the know of the financial independence, so even during college I was saving for my future flat in a fund, after graduation I did opened another one, so last year when we bought our flat we only had to get a loan for less than the 50% of the price of our flat.
As you have might read that I am considering at least 20% of my salary into savings, but it does not means that I have to spend all the rest of 80% monthly, like you can see it in my January Haul. So now I try to make some funds and later on I will try to do some investments too, so this is my frugal side:
- Retirement fund: I have been started to pay it 5 years ago, so this June I will have the opportunity to decide on if I am keep investing it or do I want to have it paid out, I think I am going to keep the money in and pay my ca. 35 EUR / month in.
- Health fund: is also monthly collected, but I do have the opportunity to ask for bills after medicines, comfort shoes, private doctor etch. These 2 are having a tax back refund option.
- Emergency fund: that is one of the most important to build up and now my focus on it and I think I will built it to my 2 000 EUR goal by July.
- Holiday Fund: is a short term fund, where we do pay so EUR-s each month, because even we do have a lot of things to still buy to our flat and to pay back or loan but we do want to have some experiences, at least once in a year now.
- Flat Fund: it is everything we wish to have in our flat,now our glass wall was on project, next is a TV screen (maybe Netflix, but no cable) and furniture to our living room (we only have an old coach). Later on we do want to have it as a fund to pay back our debt. Of course we will need to buy another flat or house, now our flat would be suitable for 3 persons only, maybe 4 if the 2 are little kids…
- Investment Fund: Yeah it is not existing yet, but I am on the way of thinking that after reaching my 2 000 EUR Emergency fund goal, I am going to slow down a bit in it to built it to 3 000 EUR (it will be only a plan by the end of 2021) so it will have a bit of money to start an investment fund in a year.
Of course I am collecting the coins like last year, so many it will be enough for the next year Charity Bal too. We might need to save up for a new car so never knows…
Here is a good example for the US (I do not have credit cards, student and car loan):
If you wish to start I do suggest to first save up for a 1 000 EUR or USD as a base emergency fund and then start paying your debts off. Try to avoid negative credits on your credit card, personal loan or by items on a loan!
I hope it was helpful, how are you doing your financials?