Tuesday, 11 August 2015
Budgets are like smoothies
Budgets are like smoothies (smiles) I can remember I said I was going to let you know what your monthly budget should look like in a previous post, so yup! you are getting it today. Some individuals make a reasonable amount of money on a monthly basis but yet still end being broke before their next pay date and they all put the blame on the bills. I have always said cut your clothes according to your size, you can always manage your money very well and still have fun, yes have fun. I know individuals do not earn the same amount of money, as a result of that I am going to be working with percentages today. I also know that individuals do have different responsibilities so I am going to classify the budgets into two. One for singles and one for a family. Today I am going to focus on the one for singles.
You are single, you are only responsible for feeding your mouth, so this is how you should be spending your income. Pay zakat, which is just 2.5% of your monthly income, then save 28% of your salary (this percentage can increase as your income rises), if you have $8000 stashed up in your halal bank account then start thinking of investing your money in other markets. I have written about a few markets you can invest in, so do check out my previous blog posts for them. 30% should be spent on rent (inclusive of all bills), 8% should be spent on transportation. 10% should be spent on food. You shouldn't exceed these percentages, but you could spend below them definitely. If you are earning a lot I wouldn't expect you to spend 10% of your income on food for your mouth only. 2.5% should be spent on phone bills. You have 19% left, free style with it, spend some with family and friends, some on saving (halal) towards travelling (holiday), some on restaurants (eat out 1-2 times a week) or clothes or towards decorating your home (if you haven't decorated it) Live your life!
Halal means anything lawful Islamically.
The next blog post will be on budget for a family. Keep checking my blog regularly.