How To Budget Your Money

My dear Thinette

 Granddaughter Thinette


How to manage your money must be a goal in itself, my dear. Know your love affair with money, and make sure you are in charge.

Learning how to budget your money, to know how much you have and what you are going to do with it, is a huge responsibility.

How To Budget Your Money

Living within your limits has great advantages, my dear.

It will help you stay in control, out of debt and not get caught up in unexpected costs.

When you need to get funds from a financing company, to buy a car or a house, you will have a good credit record.


What Value does Money Have

The way you think about the purpose of money will influence all relationships, my dear. How important is money to you, and where would you rank it?

Is it high on the list, normal or not important? A means of survival, a means of comfort or a means to luxury.

How To Budget Your Money Man's wallet with multiple credit cards.

Find a definition for money, and what is its value in your life. Is important to show off long rows of cards in your purse? You have to have the basics but what else would you like to have?

The way you think about money will have an effect when choosing a career, planning your future and how get control over your money.

When for the first time did the use of money make an impression on you. What impact did it have on your outlook, how did it influence your beliefs, and maybe inspire you?

Mine was a picture of a yacht in a glossy magazine, the interior was spacious and decorated with navy and white with bright sunny yellow cushions.

It spelt affluence and made such an impact on me but it only stayed a dream and an image. I never made it become a reality yet but is not forgotten. It is at the back of my mind, simmering! I still see myself on a yacht in the Med.

How To Budget Your Money. A super yacht at the harbour can be a goal

Only a few people with a vision, a plan and dedication will make it come true.

It lies in everybody’s ability, you have to have the Desire, a desire that overrules it all, Determination Persistence and Discipline to make it real, no matter the circumstances. It is up to you to be on a mission!

How to Budget your Money

Have respect for Money.

When you don’t value and respect money, it will keep rolling out of your pocket. It will take a great amount of discipline to manage your money.

Be money-wise by managing your money with an iron fist. Know all the how what and why of money to stay clear of the debt trap, buying with money you do not have.

Make sure not to fall into the trap and the wicked ways of commerce. With all the enticing advertisements they want to rid you of your last cent, to keep you poor. This way you will live from paycheck to paycheck for the rest of your life.

It goes along with everything else, planning is the key. Plan to buy only quality goods. Buying cheap is buying double.

Rather be patient and save till you can pay cash for what you want. Quality timeless furniture, linen, cutlery, clothes, etc. last for decades and save you so much over time.

How To Budget Your Money. Man working hard but not wise and smart, pushing a rock inside a room symbolizing the wrong way to do it.

Plan to make money work for you, if not, you will work for money all your life and get nowhere.

Work hard and work smart.

How To Budget Your Money

How will I earn my money?

There are only two ways of looking at this love. Either have a mission that you love and it might not pay well or do what you don’t like and just go for the money it pays. It is either ‘job satisfaction or a huge bank account. Very seldom do you have both, but it is worth searching for a mission to give it to you.

Don’t let your choice of ‘career’ let you have two personalities, my dear. To be a different person owning your money during the week, and only become yourself over weekends.

How To Budget Your Money

Skills to Acquire 

To find the skill you love and be prepared to do it even if you don’t get paid is your true passion.

Have you thought of it this way, every job on earth has the purpose of solving a problem for someone? Find the way you want to serve people.

Also, very important, to choose what will not be made redundant in the next decade. Go with the new digital era, to be in a serves industry is very good too.

Technology will change the face of the workplace as we know it and many careers will fall away and disappear with the coming of robot technology and automation.

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Do some research on all these aspects to make an informed decision in the field of your choice. A service-based mission and online business seem to have a longer lifespan at this moment.

Paper knowledge is not all-important, practical skills with experience are more in demand. To specialise and have a unique skill is more profitable.

The best thing you can ever do for your financial future is to invest in yourself. Do the best training you can afford, develop a high-end skill and set financial goals. Here are a couple of basic rules to follow.

~ Never choose an everyday skill and earn mediocre money, don’t be another drop in an ocean. Equip yourself with unique skills to earn more money. Find a high-end skill and develop your knowledge and experience to the highest degree.

~ Not necessarily academic, but become the best in your field. Read and learn, read and learn as much as you can. Go out and APPLY what you have learned to gain experience to become the expert. Only when you are an expert do you become an authority and will earn the best!

How To Budget Your Money. Banknote-puzzle-how-to-fit-lose-pieces-

How To Budget Your Money


Start planning and chase that dream, my dear. Make it a goal to manage your money. Compromise to make it a reality, because everything is possible if you set your mind to it!

Have you ever dreamed of having a Lamborghini like Simon Cowell, a house on the beach like Britney Spears? How about an island like Richard Branson? No, it is not a sin, it can become your inspiration to live your dream!

To just dream about it is a waste of time. If you can look without envy and use it as motivation, that makes sense. Start creating your plan of action.

Why do you think attorneys, accountants and other highly skilled people get paid more? They have specific specialised skills that define them from the rest. The more experience they have the better their reputation, earning them more.  If you don’t earn enough you have the level of skills of the majority of people. Make sure not to have this income problem.

Keeping Records

Know where your money is going, and keep track of every cent. Have a little notebook handy and write down expenditure as it happens.

Do a test for thirty days.

Keep tags on all your spending.

Name and file all receipts, and note their purpose.

Keep a daily record of all you are spending, what it is and why you need it.

After thirty days you will have a pretty clear picture of the trend in the way you spend your money uncontrollably, and see if it is working for you. If you are not happy, name and shame yourself. Adjust and be disciplined to make it work for you.

Most people only live for the NOW, thinking they will stay young forever, have a job forever, and live forever. The reality of old age, losing a job and death do not occur to them.

Planning, plotting and scheming your future, and how to do best for you and your family is very important. Do not just live, overspend, enjoy life as if there is no tomorrow, and be out on the street without any money at old age.

To live life without giving this a thought, will be meaningless. Do some planning and live with a vision.


How To Budget Your Money


How To Budget Your Money. A reminder to illustrate the raising of the cost. Image of the word COST written in red and white many times

What is the meaning of a budget? To know what happened to your money after it landed in your account.  Budget is just another word for planning the spending of your hard-earned money. You draw up a framework with all the aspects of importance and add your information.

How much money you should spend on different expenses. It is the proposed way to spend your earnings wisely, remember never spend more than you earn.

If ends do not meet you will have to cut on certain issues or find a better-paid job. Always stay within your limits, this is not negotiable, it has to happen. Do some proper planning.

Items that should be on your budget framework list are all your monthly responsibilities and all other expenses.

You need to have a roof over your head, sleep, eat, clothes, drive, feel safe and be healthy.


  • Save during the year to have at least one paycheck in your savings account, and do not touch it until the 3rd of January the next year. If you earn $5000 pm, save at least $50 or 10% every month in your lifesaver account.

  • It will rescue you when having an extra salary after Christmas and New Year to pull you through until the next payday. You always overspend and putting away a little every month will be a lifesaver.

  • Have a long term untouchable savings account, earmarked for retirement and short term savings account for everyday use.

  • Have a savings account for emergencies, my dear. The TV or washing machine breakdown without any notice.

How To Budget Your Money. Man holding an empty purse open

How To Budget Your Money

Managing Your Money

Start small and keep costs low in the beginning. Find your feet before you start running, my dear.

People and friends will respect you when you plan wisely and stay out of debt. Never leave a purse empty says the superstitious.

Avoid paying with plastic card money, my dear, meaning your credit card. Have a savings account and pay all from there.

It is satisfying to see how you grow, from the humble beginnings of second-hand furniture to the empire you are building, it is very rewarding.

How To Budget Your Money. Start small and humble, a room with just the necessary furniture

Having a clean well maintained humble warm home is far better and more welcoming than a state-of-the-art house, cold clinical and messy one.

Stick to your budget and grow slowly with patience.

Steps to Keep Track of Your Money

How to Prioritise

How do I know what is important and what has priority? Start with your needs. What would you need to live every day?

Pay yourself first every month at least 10 % of your gross earnings into a one-way account, only depositing but never withdrawing from it.

This is savings you never touch until the age of sixty. This becomes part of your retirement fund. By the time you retire, funds are never enough to see you through my dear.

Start from day one! You will not even miss the money, but, it will make a world of difference for you in old age.

How To Budget Your Money

Compulsory Payments of your Budget

 Household Bills and Mortgage

  • A place to stay, by the means of moving in with some housemates or renting a place. It will all depend on the budget. Moving in with a friend is wise, furthermore, save diligently to get your place. Have at least three times the earnings you get in reserve.

  • Utility bill for the usage of electricity, water and taxes if you are an owner. Remember there is a deposit to be paid too.

Transport and Medical Aid

  • A car payment, insurance and fuel whether it is your own or a contribution to a transport club.

  • Medical aid scheme. Getting sick is very expensive my dear. The best is to join a medical aid scheme on the level you can afford. Ask the company you work for if they have a medical aid contribution?

Variables Every Month for your Budget

  •   Food

Plan your menus and buy in advance every week, in addition, stick to your budget and not buy some Wants. Treat yourself with Take-A-Ways once a week or month and make it a feast, but that is it, no more for the rest of the month.

  •  Clothing

Pay yourself an allowance, to buy new clothes, shoes, and cosmetics. Never by on account. Save in advance for an item you want for winter.

  •  Entertainment

Set aside money for gifts, dinners out, weekend outings, sports etc. budget for these too and see what you can and what you can’t.

  •  Holidays

Prepare and save in advance for your annual holiday coming up. Pay accommodation in advance and set aside spending and travel money. If you have Timeshare, save monthly during the year to be able to pay the levies when it is due.

Social Life

How To Budget Your Money. Bar-with-shelves-full-with-bottles-alcohol

The last on your list. Drinks and cocktails deserve their spot and should be planned. With a busy social life, eating out at restaurants, takeaways and drinks in bars can easily get out of control and be a budget killer.

Limit yourself and make an estimated usage for the month. This is an item that depends on how good your budget is. If there is money you can allow if not you have to cut, my dear.

How To Budget Your Money

Ways to Save

It is not just saving money that is important love it is saving on the small things and everything else from food, electricity, clothes, fuel etc.

  • During summer close the windows, curtains and blinds at nine in the morning to keep it cool. Use fans and if you have to use the air conditioner keep it at 23*C.

  • During winter keep windows, curtains, blinds and doors closed to prevent droughts. Open the windows at midday for fresh air. Set the central heating at 20*C.

  • Buy clothes when shops have sales to get rid of old seasonal stock, normally during February and then again in August. Keep an eye open.

  • Use LED light bulbs and always switch the lights off when leaving a room.

  •  When boiling the kettle for tea, pour the rest of the boiling water into a thermos flask for tea and coffee later, all elements use more electricity.

  • Try to use the oven of the stove sparingly for the same reason.

  • Close the tap when brushing your teeth.

  • No need for a full bath of water, treat yourself to one lux full bubble bath a week. A shower uses much less water.

  • Grow your herbs in pots on the window sill, it looks pretty and saves you money. Grow your veggies if you have a garden it is therapeutic too. Nothing better than tomatoes and lettuce fresh from the garden. Containers on a balcony work too.

.How To Budget Your Money Farm stall with fresh produce

  • When out on a weekend trip visit some farm stalls to get fresh organic vegetables and fruit. It is better quality and more healthy.

  • Plan your menus for a week at a time, buy your supplies on a Saturday and portioned it for the week to come. It saves you a trip during the week and saves money.

Tips to Stick to

Be adaptable. Have lenience in the funds in the case of an unforeseen emergency. Always be ready. Never live to the last cent with your funds.

The long term savings account speaks for itself, a one-way account. Have a debit order taking care of it and forget about it. Let it grow and later you can invest in a commodity that will grow more. This is untouchable savings. Get rid of the ATM card.

A short term savings account can serve many purposes from saving for a new car, TV, holiday, etc it is there for your discrete use for things you need.

Know what the purpose of your money should be my dear. Managing your money wisely, most of all, plan thoroughly and start early.

Decide you are not going to be satisfied with a mediocre future, change your mindset. Become one of the 1% thinking and start planning to become a wealthy person!

Take an oath not to chase the bling-bling empty commercial stuff found in advertisements, that steals your money.



My dear, you are starting with a blank page, do it right from the start and do not fall into the trap of debt, please.

Do not spend money you do not have!

Rowena Tsai says “If you don’t rise to the level of your goals, you fail at the level of your systems.”

Don’t wait till later, start immediately!

Your loving grandma


 Granny Stella


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2 Comments on “How To Budget Your Money”

  1. Aloha Stella!
    This was quite a journey through all your life experiences resulting in knowing about things. About building good habits that will support one consciously and unconsciously. This is a solid basis for good decisions in life.
    Nowadays, communication between parents and children or grandparents and grandchildren can be very limited. Our kids don’t get a lot of guidance. In school, they often get filled up with information but don’t learn how to solve problems. How to decide what is the best way for them.

    I wish there would be more exchange between the generations like your letters to your granddaughter 🙂
    Wishing you all the best!
    Aloha, Jenna

    1. Hi Jenna, sometimes I wonder why good habits are so hard to follow, it’s so easy to slip into the bad, now I’m talking about eating habits… lol
      It might be a good idea to establish a family culture early when children are still small, to have a time together where everybody just talk and state their option and have to say why on what ever is relevant at that moment.
      This will be the perfect time to teach them and correct them on life skills. Do this before they have a schedule of their own with all the techno stuff.
      It should be a pleasurable fun time for all and be a family habit they would want continue one day when they have families.
      Thank you for stopping by and a very good and relevant comment, it inspires me.
      Take care

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