Budget Manifesto: Rule Breaking Handbook

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I just like Prisma and this Picture and Bow ties, Bow ties are cool

Please do not judge me, who am I kidding this the internet and we come here to judge and be judged although maybe we should not; but that is not today´s topic.

Today I will continue writing about the extensive subject of shopping and how to not get ruined.

The reason for this series is actually personal and out of curiosity too, this is a hobby inside another hobby. My budget for non essentials has been considerably reduced due to my relatively new living circumstances, yet I have managed to (within reasonable limits) continue living in the same standards as before partly because I moved to a cheaper country and partly because I have found a way to adapt without missing out on experiences, that lets face it, cost money.

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Everyone shares cute memes about how experiences are more important than money and I agree, but we need money in order to pay for the internet to post that meme, so money is not irrelevant and I do not like taking it lightly. That being said I like shopping, travelling, eating out, giving presents, pizza, bacon wait this is not about a comprehensive list of likes! The bottom line is I dont get everything for free and most people dont even if they are dirty rich…well maybe…Nope lets not go there.

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A great experience can be for free, like The Floating Piers

Curly Hair is a particularly interesting starting point to practice restraint and start a good path for financial security and long term goals, sounds funny but if you are passionate about something you are bound to try harder. So why not set a Hair goal which comprises of good financial practices?

There are lots of options out there to get good products while not breaking the savings account. A quick google search offers all sorts of boxes, discounts and special deals so the offer is not the problem, the problem is restraint. I recently downloaded yet another budgeting app and I must say it is a lot more user friendly than other for sale apps I have tested in the past,  I am not ready discuss the app just yet, but in a few weeks I will get to that.

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Revisiting my Old wardrobe only the Hat & the Bag are from 2016

Non essential purchases, services or products are all those items that are not necessary for basic standard living. Rent, Mortgage payments, college funds and utilities are essential services but make up, spa visits, cosmetic procedures, branded training clothes are non essential purchases that can be either reduced or eliminated. Prioritize essential services first always and then considerer add on items or services.

In the Meantime a Budgeting made to break rules for non essentials:

  • 30-30-30-10 Rule and how to break it
    • 30% of my income for current monthly essential spending (rent, utilities, groceries)
    • 30% Debt repayment (for instance credit card payments, car payments etc)
    • 30% savings
    • 10% Non essentials.
      • Breaking it: If I spend less than 30% of my income in essentials, I transfer that to my non essential shopping budget making it a total of 40%.
      • If I did not spend the total 30% for debt payment I would add the remainder for the saving section making it a total working fund of 60%. Always prioritazing the main categories.
  • Having Basic Non essential categories:
    • Clothing
    • Hair Care Products
    • Sports Gear
    • Beauty Services
      • Breaking it: If the income is regular we already know the exact amount we have available for each tear and we can allocate a specific amount to each tier lets work with and easy round number $100
      • $25 dollars for each category, if I dont need sports gear I move the 25 to Hair care, and so on and so forth and if I really need or want to buy all in Haircare then fine but making sure to not purchase anything else until the next month.
  • What if I want or need to buy something more expensive, lets say a $200 Hair Steamer or Hair dryer.
    • Funds rollover: I either make savings for the next month (best option) or take a self loan from the next month budget. I think saving is better because it creates a habit of restraint but many times I simply just buy ahead and assign a zero budget for next month
    • Breaking it easier: Make the purchase the last day of the current month.
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Nachos are always essential, not giving up nachos 😛

I like to keep it short for now, please let me know if you have any budgeting techniques that work for you and if you would like to read more about this topic!

Cheers!

The Hair Lab Doctor

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