Monthly budget: how to do it

A budget is just telling your money where to go. Here's how to do it without complexity.

A budget isn't a prison. It's just a plan. You say "this money for the mortgage, this for food, this for fun". That's it.

Why it works

Without a plan, your money disappears and you don't know where. With a plan, you know exactly how much you can spend on each thing.

Make a budget in 5 minutes

Open a spreadsheet. Write your monthly income. Write your big expenses: mortgage, food, transport, utilities. Add them up. Is there money left? That's for savings or fun.

Basic categories

Needs (40-50%): mortgage/rent, food, utilities.

Goals (20-30%): savings, investment, pension plans.

Fun (20-30%): movies, travel, treats.

The 50/30/20 rule

Needs 50%, fun 30%, savings 20%. It's not perfect but it works for most people.

If you spend more than you earn

You have a problem. You need to spend less or earn more. There's no magic.

Monthly review

Every month, review your budget. Did you spend more than planned? Where? Why?

Don't be obsessive

If you planned 50 euros for movies and spent 55, it's not the end of the world. A budget is a guide, not a prison.

The psychological benefit

When you know you have money for movies because you planned it, you enjoy it guilt-free. That's what matters.

Tools to do it

Paper and pen. Excel. A mobile app. Anything works. What matters is doing it.