Actually how fine and detailed are you into your budgeting for now? I am happy to share my current framework though it is certainly not that perfect
- I use excel.
a) budget the monthly income, and fixed regular expenses (including loan payments, credit cards, utilities etc)
b) budget the monthly allowance and the amounts you give your dependents
c) budget out annual expenses so that you can average out a monthly amount to set aside. This includes travel, insurance and certain bills that you may have opted for annual payment, and dental/medical/ optical.
d) last I set a category for saving.
I am at a rather advanced stage now, and yes, its good to make saving for voluntary contribution a separate category.
- Just to be clear, are you doing voluntary contribution or the minimum sum top-up that gives relief? The minimum sum top-up goes straight to special account, and you get relief for up to 7k. Voluntary contribution is generally for self-employed and gives not much tax relief unless it counts into the CPF relief. There's a difference so you might need some checking.
I use the OCBC savings goal to do auto-saving / set aside or accruing for future expenses. When the bill comes, I release the $$ from the goals to pay for the bills. Its an alternate way for envelope budgeting which is really awesome.
My main savings goals are
retrenchment / rainy day / emergency fund. I lump the insurance and some unavoidable bills here together to build the saving altogether.
rewards fund for travel and hp upgrades etc
an angpow fund for giving CNY /father/mother day / Xmas fund, and in case, for wedding presents
an investment fund - which I am splitting into three, a regular monthly one, a periodic one (sorta for timing the market), and one for CPF + SRS.
=> I used to do it all in one goal, but it keeps my mind focused on only increasing my regular dividends / passive income, and I felt bad for doing the CPF / SRS sometimes. I decided doing a split was the better long term way. I just need to work out a good split, then I got my emotions in check.
Actually how fine and detailed are you into your budgeting for now? I am happy to share my current framework though it is certainly not that perfect
a) budget the monthly income, and fixed regular expenses (including loan payments, credit cards, utilities etc)
b) budget the monthly allowance and the amounts you give your dependents
c) budget out annual expenses so that you can average out a monthly amount to set aside. This includes travel, insurance and certain bills that you may have opted for annual payment, and dental/medical/ optical.
d) last I set a category for saving.
I am at a rather advanced stage now, and yes, its good to make saving for voluntary contribution a separate category.
I use the OCBC savings goal to do auto-saving / set aside or accruing for future expenses. When the bill comes, I release the $$ from the goals to pay for the bills. Its an alternate way for envelope budgeting which is really awesome.
My main savings goals are
retrenchment / rainy day / emergency fund. I lump the insurance and some unavoidable bills here together to build the saving altogether.
rewards fund for travel and hp upgrades etc
an angpow fund for giving CNY /father/mother day / Xmas fund, and in case, for wedding presents
an investment fund - which I am splitting into three, a regular monthly one, a periodic one (sorta for timing the market), and one for CPF + SRS.
=> I used to do it all in one goal, but it keeps my mind focused on only increasing my regular dividends / passive income, and I felt bad for doing the CPF / SRS sometimes. I decided doing a split was the better long term way. I just need to work out a good split, then I got my emotions in check.