A BUDGET UPON A BUDGET.

calculator and notepad placed over stack of US dollars

It’s another great day to talk about a crucial topic, budgeting. We all want to manage our income so we don’t get caught up in unforeseen crisis. I have a question for you; how do you budget? Let me hear you in the comments right away.

Key takeaways:


• The aspects of finance to be included on your budget.
• The respective ratios assigned to every aspect of finance on your budget.

The aspects of finance to be included on your budget.


It doesn’t matter whether you’re an employee or businessperson, these aspects of finance has to be present on your budget. They’re: Investments, Savings, and Expenses. Now, let’s talk about why each one of these has to be present. Starting off with investments. A portion of your income (whether weekly, monthly, or annually) has to be set aside for opportunities or ventures that has the capability of generating more money for you (now, or in the future). Creation of a passive income is the reason why you need to include investments on your budget. Here is why savings has to be on your budget (I guess you know it already), to support you in “uncertain times”. Savings acts like a safety net, and who doesn’t want to have a safety net when they’re falling from a height? Everybody does. Expenses can’t be taken off your budget, it needs to be there. Without that money, how can you feed yourself and your family (if you’re obliged to do that), take care of the bills [electricity, water, tuition, medical, transportation, rent, or mortgage], let alone buy some amenities (clothes, gadgets, automobile, etc.)?

The respective ratios assigned to every aspect of finance on your budget.


The 30, 30, 40 rule works perfectly. 30% of your income (or profit, if you’re a businessperson) must be assigned to investments, another 30% to savings, and the remaining 40% to expenses. You can rearrange them to suit your taste. Once you’ve managed your income with this rule, you can further budget the portion you’ve set aside for expenses, to keep track of the things you spend on.

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