Keeping personal finances in order

As we have moved back to Spain and are looking for an apartment to rent in Madrid we had to make a new budget for ourselves. The budget is set after saving 10% for savings, saving 10% for investing and 10% for charity (Although I do that through my Internet business entity.) We are also saving €700 per month for our future home. So we have to work with what’s left over.

Rent 900,00 €
Expenses (electric, etc) 200,00 €
Food and bath 200,00 €
Fun 200,00 €
Gas 80,00 €
Parking 100,00 €
Gym 100,00 €
Car insur/repairs/misc 50,00 €
Trips to visit parents 100,00 €
Clothes 50,00 €
Movies/Toys 50,00 €
Work lunch 100,00 €
Metro/bus pass 92,00 €
Phone/Internet 50,00 €

Total 2.272,00 €

This takes into account all normal expenses and is below our earnings minus all the savings. Of course we would love to spend more on rent and have something better. The options are limited with 900 in Madrid. If you want something nice it will be very small. You would have to spend about 1400 to get something nice and decent size.

In my opinion, living within your means is well worth it. Years ago I would spend every last cent and more on credit and I was always concerned about money. I was always impatient or anxious to get paid for a freelance job ASAP because I desperately needed to collect payment. Instant gratification was my way of life: Get a bigger monitor, a bigger TV, a better desk, a newer computer, etc. always more than I could afford.

For the past 4 years, since changing my money habits, I never think or worry about making ends meet. Money comes in from my Internet business and I always spend less than I make and save part of it. If I want to spend more then I have to figure out ways to make more, it’s that simple. If everyone took this attitude and lived this way we wouldn’t be in our current economic crisis.