Budgeting 101 for Millennials by CompareHero.my

Budgeting 101 FOR MILLENNIALS IN THE WORKFORCE To be a 20-something just starting out in the working world can be very, very scary. Just think of the responsibilities you'll be faced with every day! Not just that, think of all the money you'll be earning, and all the things you can buy with it! But hold that thought! Don't you know you need to budget your earnings so you can live life the best way possible? It's okay if you have no idea how to budget your earnings, because we've got your back! Follow the 50-30-20 Rule 50% Essential Expenses RENT UTILITIES FOOD TRANSPORTATION 30% Financial Priorities DEBT LOANS SAVINGS RETIREMENT 20% Lifestyle Choices SHOPPING ENTERTAINMENT TECHNOLOGY NIGHTS OUT Take It to the Next Level: Break It Down Here's a good example of how you can budget your monthly income. The following is based on an average salary of RM 3,300 from starting earner working in an urban city like Klang Valley: Essential Expenses 30% 20% 50% Rent RM 750 Utilities (Water, electricity, phone bills) RM 325 Food RM 400 Transportation RM 175 Total RM 1,650 Financial Priorities 50% 30% 20% Debt RM 450 Loans RM 340 Savings RM 100 Retirement RM 100 Total RM 990 Lifestyle Choices 50% 30% 20% Clothes & Shoes RM 250 Entertainment (Movies, clubbing, etc) RM 150 Technology (smartphones, laptops, etc) RM 150 Y Dining & Drinking Out RM 110 Total RM 660 *Based on average salary of RM 3,300 ТOTAL RM 3,300 from starting earner working in an urban city Illke Klang Valley Expenses to Reconsider Magazine subscriptions Cable TV Designer/ luxury Items Regularly ordering out for lunch/dinner Fancy meals Additional Tips Always list down your savings and expenses every day Reorganise your "lifestyle" budget and allocate more money on the things you enjoy, and try doing away with the rest. Open a savings account now! Keep track of the money you put in, but don't touch it! Live as simply as you can! If you can find cheaper alternatives, go for it! Always set a financial goal. This can be clearing your debt, or achieving a certain amount in your savings account. Learn to say no to yourself when encountering expensive or pricey things that catch your eye. Re-evaluate your lifestyle! Don't be afraid to put luxuries on hold until you earn more, or have enough disposable income. The more debt you clear, the more money you can allocate into your savings and retirement funds. Get more practical money tips on our blog! Visit CompareHero.my/blog. CompareHero.my We compare, you save Sources: http://greatist.com/happiness/personal-finances-guide-infographic http://www.theatlantic.com/business/archive/2013/12/yes-millennials-are-cheap-and-this-graph-of-the-teenage-budget-explains-why/282123/ http://www.dailyfinance.com/2013/07/11/money-management-tips-millennials-new-jobs/ http://www.huffingtonpost.com/graham-ober/5-tips-for-millennials-wh_b_6458472.html http://www.businessinsider.com/excellent-budget-from-a-25-year-old-2015-1 https://medium.com/@haley/money-for-millennials-aa93de05792 http://www.themalaymailonline.com/malaysia/article/what-does-it-mean-to-be-middle-class-in-malaysia http://www.numbeo.com/cost-of-living/country_result.jsp?country=Malaysia