Where to Start: Manage Your Expenses

I am new to the process of improving my financial position.

I am keen to learn about improving my passive income through blogging and increasing my investments (This will take time).

One thing I was good at from my university days was managing my expenses vs. income. I would recommend this as a starting point to any young person.

It is really easy to do and you can see the benefits immediately. 

Take control of your money

I started an excel spreadsheet to take stock of my income and expenditure when I was at university. This was an attempt to make sure I wasn’t spending random amounts on eating out and I was keeping track of my bills.

I was able to budget how much I would have to socialise too, therefore avoiding huge blowouts leaving me struggling for the rest of the month (This still happened at times).

My current spreadsheet looks like this:


I get paid fortnightly (I find this much better than monthly) and as you can see I track my income and my usual expenses. Once I get paid I immediately transfer my savings into my savings accounts. You can also see a $50 sum goes straight into my investments with SuperLife.

My aim over the next few weeks is to try and cut down my expenditure after reading this blog, which was a real eye opener.

My first port of call is switching energy suppliers and changing my phone package to reduce my costs.

There is a rule called 50/30/20 which suggests you should spend 50% of your income on living expenses such as rent and food, 30% on non-essentials and 20% should be saved.

I am currently saving around 25% but I feel there is more to be gained.

I will update you on how it goes shortly.

Thanks for reading.

3 Replies to “Where to Start: Manage Your Expenses”

  1. I definitely feel one could stretch their savings to 50% albeit with discomfort. My personal best recently has been 58%. It was an herculean task. But it still pales in comparison to my 1 year experiment of being an extreme cheapskate ( where I saved 90%) to pay off education loan. I have just posted an article on it.

    1. Wow that is an amazing achievement!! 90% must have been monk like. With regards to family and friends did that lifestyle have a negative impact at all?

  2. It was tough to stick to the budget. There was a personal reason to stick to it which I have stated in the article. While I was at it, I used ‘Meetups’ website to socialize with people for free activities like hiking, tramping etc. My equation with family didn’t change much. All my immediate relations were in India and I would keep in touch with (still do) using Skype/Whatsapp. I knew no one to begin with in NZ and I was single. That worked in my favour haha. Here’s the link to the article. I have explained it in detail.


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.