Do you find it hard to save money...and can never seem to stick to a budget?! Then perhaps you might want to consider Zero base budgeting. If you often find yourself wondering where all your money from your paycheck went then this type of budgeting might suit you!
As soon as you get paid allocate all of your money and make sure every single euro is accounted for that month. Split your money up between expenses like rent, bills, food, entertainment, savings, emergency fund, retirement fund, misc, and anything extra you can decide to add to whichever basket you wish, pay off extra debts or put towards a lifestyle goal. The keys is to ensure you do this straight away once you are paid so that you don't lose track of your spending.
It's as simple as that, so you don't have to look back come the end of the month and wonder where all your hard earned cash went. You can plan exactly where you want all your money to go, yes you may want to tweak around a few things from month to month but it is a good way to start.
This way you can make sure you pay yourself first and put money towards your personal goals and improving your overall financial health like building up an emergency fund rather than spending like a Queen the first week you get paid and the most dangerous of all "impulse buying" you will know exactly what you can afford to spend.
#First: Know your total income for the month. Eg; Total income 2,650 euro.
#Second: Write down your total expenses. Expenses 1,500 euro
#Third: Allocate whats left over to your savings account, debt re payments, lifestyles goals and any other misc you might have for that month.
Make sure you have all of your income accounted for and put it exactly towards the things you want. If we account for maybe just our expenses and maybe put a small portion towards savings you may end up realizing that you are not spending what is left over wisely and wondering where it all went at the end of the month.
"Be the boss of your own budget and CEO of your own life"
Try to remember the Miscellaneous amount should be for any unexpected expenses for that month and not there to spend on that new pair of shoes you saw.
You can of course chose to spend it on this if you want but be mindful of that the money and where you are taking it from so you are not left short at the end of the month.