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Be a Better Budgeter with Quppy
Everyone can benefit from budgeting. But it doesn’t have to devour your entire lifestyle! So don’t worry; you won’t be clipping coupons for the rest of your life. To achieve your financial goal, you must change your thinking.
It can also be fun! We’ll show you the way.
If budgeting is new for you, read about some benefits here. But this article is all about the practical tips for getting started.
Start budgeting today with these tips
Make a list
Set aside a couple of hours now, and you’ll thank yourself later. Make a list of everything you spend money on. Categorize your spending habits. There are apps and websites that can help you do this, but we’ve found pen and paper or a note-taking app work just as well.
First, consider the obvious things like rent, bills, transport, groceries, dog food, and cat litter. Then make sure to include lifestyle expenses, such as your gym memberships, new clothing, accessories as well as that new food delivery habit you’ve picked up. 😉 (We see you!)
Make sure you’re aware of all your subscriptions. Disney Plus and Spotify are great if you’re using them often. But sometimes, it’s easy to subscribe and forget. So make sure to include those recurring expenses!
And don’t forget about the stuff that only happens every year or two. Insurance payments, trips to the health clinic, or that immigration lawyer. This is the tricky stuff that is easy to forget but really adds up.
Check it twice
Once you’ve got a LONG list of expenses, you’ll probably be in shock for a few minutes, but get yourself together! Because now it’s time to categorise your expenses. Use highlighters in your app or some colourful pens to divide everything in your list into three categories:
- Need it
- Love it
- I’ll survive without it
This practice is great to do regularly to just check-in and be conscious of your spending. It’s easy to lose track of how you’re spending money, especially with easy digital payments. But once you think it through carefully, you’ll be one step closer to having a budgeting mindset.
“Need it” and “love it” expenses should definitely be a part of your budget. But think about whether you can cut out the “survive without it” expenses. You could use that money towards your goal of a trip to South America or a down payment on a new apartment.
Having said that, we’re not here to judge. It’s up to YOU to prioritise what you want in your life. Because sometimes those daily lattes or singing lessons, actually DO add value to your life. The most important thing is to be aware of your expenses and evaluate them regularly to make sure they add value later on.
The magical envelope trick
Now it’s time to categorise a bit further and start setting money aside for each expense. Envelope budgeting is a tried-and-true trick from paper-based technology (read: cash and postal envelopes) but has gotten even easier with payment apps like Quppy. Instead of physical envelopes, you can use vaults to set money aside.
Let’s say you have rent and bills to cover, but you’re not a huge spender otherwise. Perhaps you send some money to your family every month. And every once in a while you like to go out and have some fun with friends. So you might have an envelope for rent and utilities, another for family, another for food and home supplies, and a fourth for “fun”. By budgeting for each, you’ll be more aware of how you’re spending in the future. And by dedicating a virtual envelope to each category, you’ll be more likely to stay within your budget.
The best part of all this is that it’s easy to make a habit out of it. Dare we say you might even have fun doing it? When income arrives in your account, divide it up, and you’re done! Once you’ve put your money in an envelope (or digital vault), you’re much less likely to “reach in” and use that money for something else.
Uh-oh. I saved too much…
Let’s say you used our tips and did such a good job budgeting that now you have a surplus. Congrats! You can save it for an emergency, donate it to charity, or — our personal favourite — make your money grow by investing. Even if it’s just a tiny amount at a time, it’s ok. Micro investing has become a major trend that we love. Because we think investing should be accessible to everyone.
Investing and budgeting – double up your savings power
Investing is a risk, and you should only invest what you’re comfortable with potentially losing. But to miss out on cryptocurrency and stock market trends that are helping other people earn money, especially with rising inflation, means you’ll always be a step or two behind.
One thing you should know is that cryptocurrency is speculation. Nobody knows what will happen. However, a big part of investing is taking a bet on your investments being worth much more than what you bought them for. So if you don’t love the idea of relying solely on paychecks, look at how you can put your money to work for you. And be sure not to put it all in a single coin, stock, or fund. Nobody wants to put all their eggs in one basket.
Quppy is a great place to transfer money from a traditional currency to crypto and, if you are aware of the risk, see where crypto will take you in the future. Just make sure it won’t set you back if you lose some of it, and be sure to keep your emotions out of it. There will be volatility, and you have to be able to take a deep breath instead of rushing to transact.
“But I don’t have enough money to start”
Sure, some people are born rich. Everyone else just has to work a bit harder. (And it’s worth noting that even the rich have to work not to lose it all!)
Some people feel that investing the 5-10-or-50 Euros they save each month is pointless. Well, it isn’t. Every little bit counts, and that’s not just a cliche.
Our advice is to start NOW. Because the sooner you start, the sooner you’ll see your wealth grow! Markets can go up and down fast, but over time, lower-risk investments do rise over the long term. And that means the longer your money is invested, the more it will grow. So if you are curious about investing, it’s time to start now. And if it’s within your power, consider investing a minimum amount monthly and treating that as a fixed expense. That way, you won’t forget about your investment strategy.
Last but not least? Go have fun and enjoy your new perspective on money. We can’t wait to see you succeed.
Want more budgeting and finance advice? Or want to hear what cool, new features Quppy has in store for you to help you manage your money? Then sign up for our newsletter and stay in touch!