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How I budget and plan my finances in my 20s.
Easy as ABC [THREAD]
Easy as ABC [THREAD]
Because of the fact that I am still young and have zero to no responsibilities I am able to capitalise on time and money.
This allow me to minimize as much as possible while still enjoying the best things in life for myself.
This allow me to minimize as much as possible while still enjoying the best things in life for myself.
1) I keep all my monthly living expenses under 45% of the money I earn each month. All my needs and wants must fit within this 45%.
Before end of each month I write down everything I need and how much it will cost and also I rank them from most important to least important.
Before end of each month I write down everything I need and how much it will cost and also I rank them from most important to least important.
2) Because I have alot of short term goals I wanna achieve this means I have alot of savings account that are dedicated in ensuring that I achieve those goals. For this I spend money between 20% to 25% of my monthly income into my savings accounts.
I have upto 6 savings account with one financial institution(because of good interest rates). Most of them are savings goals between 6 to 24 months.
Under this 20% I also include my stokvels because it is also a savings tool.
Under this 20% I also include my stokvels because it is also a savings tool.
3) I spend send each month 20% to 25% on my investment portfolio during lockdown I was spending 40% as I was back home.
All my investment are aimed at creating a good retirement plan for myself. I am doing this now so I don't have to worry about it late.
All my investment are aimed at creating a good retirement plan for myself. I am doing this now so I don't have to worry about it late.
My investment portfolio is made out of mostly:
1) Equities
2) ETFs
3) Cryptocurrency
4) Government Bonds
5) My Business ( @opencampusza)
6) Little bit of property
7) Livestock
I have threads for each of those investment assets excluding my personal business.
1) Equities
2) ETFs
3) Cryptocurrency
4) Government Bonds
5) My Business ( @opencampusza)
6) Little bit of property
7) Livestock
I have threads for each of those investment assets excluding my personal business.
The last 10% goes into my emergency fund account. Because I am still young. I save as much as possible into my emergency fund as I don't know what the future have in store for me. I don't try to cover any monthly expenses but for now it is to try and have as much as possible.
