Moving out and getting your own place is exciting, and it can also be a bit scary, especially if this is your first time living on your own. Having your own place may be more expensive than you may think, so creating a budget can help you manage your money and ensure all of your expenses are covered. Here is what you need to know about creating a budget.

What Is a Budget

A budget is an estimate of expenses and a financial plan to pay for those expenses over a given amount of time. A budget can help you better understand your finances and make informed decisions to allow you to live comfortably now and prepare for the future. Some people may look at a budget as restraining or forcing yourself to go without, but that is not the case at all. A budget is about making intelligent choices and learning how to balance what you need with what you want while also looking out for your future.

Tally Up Your Monthly Expenses

You may not think you have a lot of expenses, but when you start adding everything up, you will quickly realize just how much money you spend each month. Your monthly budget should include rent, utilities, food, transportation, debt, personal items like clothing and hygiene products, medical, and entertainment. When creating a monthly budget, make sure to include expenses that you may pay quarterly or annually, like insurance or some streaming or membership services.

Most of these expenses are straightforward. Your situation will dictate the total cost of each item. For instance, transportation may mean bus or subway fare in cities. In contrast, in areas requiring a car to get around, transportation will include all costs tied to maintaining a vehicle. Entertainment can consist of everything from streaming TV services to going out to eat or going on vacation.

How to Break Things Down

Most experts agree that a 50/30/20 split is the best way to spend your budget. A 50/30/20 budget means 50% of your monthly income should go towards essentials like rent, food, and transportation. Dedicate 30% to things you want, like going out to eat or a gym membership, and lastly, put 20% of your monthly income into savings.

The Value of a Savings

It is not always easy to build up savings, but you should save money if you can. So many unexpected costs can add up, and having a cushion can help you cover these bills. For instance, if your car breaks down and requires repairs that cost more than what you set aside each month for essential transportation costs, then having savings can be crucial. A savings or emergency fund is about planning for the unexpected and can help you deal with hard times or difficult situations more efficiently, at least in terms of finances.

Track Your Spending

Creating a budget is helpful, but a budget only works if you stick with it. Tracking your spending and tallying up just how much you spent at the pump or deciding to skip a trip to the coffee shop can be tedious and maybe even a bit frustrating. However, committing to a budget can be rewarding and set you up for future security and success.

Change is the only constant, so make time to review your budget periodically. You may need to make adjustments if you move and your rent goes up, or maybe you take a safety course, and your car insurance goes down. Your budget should accurately reflect your expenses. Also, make sure to adjust your budget if your income changes. Getting a raise or changing jobs can make a significant change in how much money you have in your budget.

Feel Free to Customize

The 50/30/20 rule works for many people, and if it works for you, you should continue to follow it. However, if it makes sense for you to adjust how you allocate your budget, then you should do so. For instance, you do not need to dedicate 30% of your budget to things you want; maybe 25% or even 20% is enough. It is generally a good idea to shift any surplus to your savings. Building up savings can help you secure more financial independence and better position you to make more significant moves, like a downpayment on a new car or a house or just being able to pay for something you want without relying on credit.

Manage Your Money Wisely

Creating a realistic budget can help you live within your means and thrive. Learning how to manage your money is an essential skill that will help you enjoy the things you want while ensuring you have the things you need. It may not always be fun, but dedicating time to maintain your financial health can prove to be very beneficial if you fall on hard times or if you want to treat yourself.

Although many of us are no longer under lockdown, we have become accustomed to working and staying at home. As the festive season approaches and the cold sets in, we find ourselves staying home more often. Keep boredom at bay with these activities that are fun for all the family.

Teenagers and Beyond

Teenagers may be difficult to please, but there are plenty of creative ways to get them involved during family time. There are plenty of activities that will pique their interest and allow them to discover new hobbies. Research has shown that spending time with their family positively impacts teens’ psychological and social adjustment.

One cannot go wrong with card games. Why not have a game of Uno or Phase 10? If you opt for the latter, don’t forget to familiarize yourselves with the phase 10 rules or arguments may ensue. Contrary to what you may think, card games are as popular as ever. In 2020, the international card game market generated around 5.6 billion US$ in revenue and is estimated to exceed 6.8 US$ by 2025.

Be it card games, board games, or virtual gaming, make family game nights a little more interesting by turning them into mini-tournaments with prizes or rewards for the winners. It’s always more exciting to throw a little friendly competition into the mix.

Been binging too many episodes of Hell’s Kitchen or Masterchef? Channel your inner Gordon Ramsay by getting creative in the kitchen with the family. Decorate cute bento boxes. Brew your own kombucha and go crazy with the unlimited flavor combinations. Make a sourdough starter and challenge everyone to come up with the punniest name. Bread-ly Cooper, anyone?

Gardening may seem like a chore, but the reward is well worth the time and effort. Setting up a family garden is fun, educational, and purposeful. It is also a wonderful form of physical activity, especially if everyone has been cooped up in the house for far too long. Put in the work, and you’ll get to enjoy the fruits of your labor. There’s nothing like fresh vegetables and aromatic herbs straight from the garden!

If your teenager spends the bulk of their time in their room, let them personalize or update their space through a fun hands-on activity everyone can get involved in. Easy and adorable projects include wall decals, book planters, and pegboards. If you’re up for a challenge, try following DIY videos on refinishing furniture, or give the room a complete color overhaul.

At times, social media has all the entertainment you need. TikTok challenges or dances can be silly, but some make for harmless fun. Round up the family, swallow your pride, and get ready for hours for rib-tickling amusement.

Krafty and Kid-Friendly

Younger children tend to have shorter attention spans, but there are tons of engaging and enriching activities that will keep them occupied for long periods of time. Best of all, you won’t have to resort to video games or tablets. Not all the time, at least.

Building a terrarium will keep children entertained for hours. Not only is it low-maintenance and an easy way to incorporate plants into your home, but it is also an excellent tool for kids to learn about the water cycle and the environment. The little plants or critters that may emerge over time will keep the children curious, and make great conversation-starters.

There are many science experiments that can be easily conducted with simple household supplies or pantry staples. Watch your kids’ eyes light up in amazement at an exploding volcano made with baking soda, vinegar, and food coloring, or whip up some oobleck with cornstarch and water for a fascinating sensory experience.

Art jamming involves getting together in a group to paint or draw. All you need are the necessary materials; paint, canvases, brushes, and the likes. Take inspiration from household objects, the changing seasons, or even the beloved family pets. You can even frame each completed masterpiece around the house, making a personal family gallery of sorts.

One cannot deny that blanket forts are universally loved. You’re never too old to gather your chairs, pillows, blankets, and cushions, and have fun building an epic fort with the family. Normal activities like snacking or watching movies become so much more fun inside a fort—the kids may not even want to leave!

If the weather permits have a themed picnic or tea party on your lawn. Let the kids get involved with decorating or preparing snacks. Games like Red Light, Green Light, a ring toss, or even a scavenger hunt are bound to be a big hit with the kids. If you have a fire, gather the family around on a chilly evening and share stories with one another over s’mores and cups of comforting hot chocolate.

Believe it or not, the options are endless. Don’t worry about being cooped up at home, for there are plenty of games and activities the entire family can engage in. Here’s to making lasting memories!