Updated date:

How to Budget Your Salary


This is Kiwi. Passionate writer who loves to write about different topics and likes to share and help others with simple tips.


A lot of people struggle with distributing their salaries and going on a monthly

budget and stick to it. If you are one of those people, let me tell you that there are

many ways to manage your salary.

You need to make a budget that includes all your monthly expenses, savings, and

your enjoyment.

First of all, you should list all debts to be paid and deduct their total amount.

Then, determine the amount you are willing to save. So you can outline the

expenses for the month.

Afterward, you need to organize your expenses and split them into three categories

according to your priorities: fixed basic expenses, changeable expenses, and


  • The fixed expenses include the expenses of housing, education, health, children, etc.

  • The changeable expenses are the luxuries that raise the standard of living, like shopping, travel, entertaining activities, eating out, etc.

  • And the savings. This category can serve you in paying off debts, investment, or saving for emergencies.

Some ways to divide the salary

  • Enveloping: you can use separated envelopes and allocate them to each category. Write on them the expenses' names, and how much money you put in them.

To not exceed the amount in the envelope, write how much you spend each time

you pick the money. At the end of the month, you will realize how much money you

spent and how you spent it. Moreover, you may exclude unnecessary expenses.

  • You can also divide your salary via a smart app. Many financial apps help manage the salary in proportion to the expenses.

  • The 50_30_20 budgeting plan: this budgeting rule helps in managing the salary and reducing financial pressure.

This rule works as the following:

Allocate 50% of the salary to the fixed expenses, while 30% goes for the

changeable expenses and the remaining 20% is for the savings.

I hope this article will be helpful to you and enable you to spend your salary

rationally and freely.

© 2021 Kiwi Berry


Kiwi Berry (author) on July 23, 2021:

Thank you I am glad hearing that

Hertha David from Windhoek, Namibia on July 20, 2021:

It was very helpful, thank you Kiwi. I basically just spent more than an hour on your various articles.

Related Articles